Stebbins says added liquidity in the market, “starting with policies during the last administration,” has increased materials, labor and real estate prices. “On one hand, the cost of construction is higher, but on the other, the value of the finished buildings is higher,” he says. “The underwriting of projects is difficult because the historic value of real estate does not support rising construction costs. In many cases, it takes a leap of faith by developers and lenders to trust that a project’s future value will sufficiently overtake current costs.”