Financial: Oil prices up means real-estate prices may go up as well

April 27, 2006

Here's what I was told and this is also what sounds pretty logical.

As oil increases it will cost much more to ship around raw materials for building construction, say wood, steel, or other constructure goods. It will be an indirect increase but for every bit of wood that needs to be transported there is just that much more charge in oil fees to get it from point A to point B. An increase in raw supplies will include construction projects for the architects and building planners. Thus raising the final price for a new building, then the cost of already ready buildings will go up too since they are relative to the market.

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