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Where are today’s new homes? Why isn’t the homebuilding industry booming?
Fourteen years ago, construction in the top 10 markets totaled 394,000 single-family homes. Today, those markets are building 54% fewer homes, according to John Burns Real Estate Consulting.
Yes, there are certain metro areas that have recovered quite well since the housing bubble burst (Houston, Dallas), but more often than not, major metro regions are way behind the curve. Atlanta builders are building 36,000 fewer homes than in 2005, and Phoenix builders are building 37,000 fewer.
The reason behind this slowdown? Price increases at every building stage have pushed home prices to a point where homebuilders find it difficult to build homes priced $250,000 and below.
Hmm... time for a single-family rental?
Read on HERE