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Old 04-17-2010, 01:23 AM   #1
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Any idea on % increase in costs past decade?


Attempting to compare a bid for renovation & addition with the known cost of a similar project back in 1999. Won't be very scientific, since the projects differ in many respects. However, just for starters, anybody have an informed estimate of how much "inflation factor" to figure into such a comparison? My guess from the new bid is perhaps 20-30%, which seems rather high.

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Old 04-17-2010, 01:45 AM   #2
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Any idea on % increase in costs past decade?


The price of steel, fuel, taxes... everything but wages has gone up in ten years.
Building costs locally and real estate values have pretty much doubled in the last 12 (or so) years.

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Old 04-17-2010, 02:14 AM   #3
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Any idea on % increase in costs past decade?


That's a loaded question, any serious answer would require more research than I could muster.

But all things being equal, I would say 20% sounds about right.

I'm purposely keeping this short because this can become a lengthy topic.
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Old 04-17-2010, 12:13 PM   #4
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Any idea on % increase in costs past decade?


20 to 30 percent doesn't sound bad---10 years ago---my health insurance was $280 -now $885

Gas 150?--now 3++----What did you get paid per week 10 years ago?

How much for a new car? What was your property tax bill? 20--30 percent ? Not to bad.-Mike-
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Old 04-17-2010, 02:22 PM   #5
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Any idea on % increase in costs past decade?


Consumer price index says 3%/yr.
Using the Rule of 72, prices should then double in 72/3 = 24 years. If they double in 12 years it's 6%/yr.

More exactly, with 3% [0.03] and 24 years,
[1.03]^24 = a factor of 2.03 vs. 2.

Alternately,
X^12 = 2, X = 2^[1/12] = 1.059 = 5.9%.
and
$885/$280 = 3.2 = X^10
X = 3.2^[1/10] = 1.12 = 12%/yr.

My house selling price has gone up by a factor of 2.6 since 1992.

Last edited by Yoyizit; 04-17-2010 at 02:36 PM.
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