Materials and labor costs are up. Building costs will climb further if interest rates on construction loans rise.
Fresh consumer price index data pretty much guarantees a big interest rate hike when the Federal Reserve meets next week.
"We need to act decisively and affirmatively to get inflation under control," says Atlanta Fed president
Raphael Bostic, president and CEO of the Federal Reserve Bank of Atlanta, on why he supports this week's rate hike.
The central bank is raising its key interest rate by three-quarters of a percentage point.
"A look at the record shows that the Fed often stumbles in its efforts to save the day," says Ben White, chief economic correspondent at Politico.
It's a quarter-percent increase, with two more expected this year.