Last quarter, construction for single-family houses started to surge with an increase of 8.5% for September alone. More people are looking for single-family homes to both buy and rent, which opens up opportunities for property investors nationwide.
Low-Density Areas Attract New Residents
People are moving to low-density areas for a number of reasons. Living in close quarters, such as large apartment complexes in big cities, has increased tension and anxiety during the current pandemic. People want to be distanced from one another, and single-family properties facilitate that need. People also need space to work from home and for their children to learn, as both businesses and schools are functioning online. By spreading out to low-density areas, people can achieve peace of mind, higher productivity, and continue their lives with less stress. Additionally, the cost of living is typically lower than it is in the heart of the city.
Single-Family Construction Opportunities
While many property investors have been generating income with fix and flip projects in the suburbs, there is now room for new construction. Depending on the location, new construction can be less involved than property flips. It allows property developers to implement the floor plans, infrastructure, and amenities they want instead of having to find workarounds with older, pre-existing structures. Building homes from the ground up also gives commercial real estate investors an opportunity to future-proof their designs, which is something more prospective homeowners and renters are looking for in residences.
To Rent or Sell?
New construction also gives commercial real estate investors the ability to generate income from selling homes as well as renting them. More people are looking to buy new homes, but more renters want single-family residences compared to just a few years ago. In addition to the desire for single family homes that has arisen from the pandemic, people are more mobile than ever before. Gen-X, Gen-Y, and Millennials are more likely to take well-paying contract work for months or a year or so before transitioning to new roles. This shift in the workforce has given way to a need for housing that matches their lifestyle without settling on leases for studio apartments. As such, more people want to rent single-family properties, and new construction can attract tenants whose jobs are currently too mobile for them to purchase a house.
If you are looking to start new construction for single-family homes, contact the experts at The Capital Rams. We provide temporary to permanent capital for construction projects of every size. Reach out to our offices today to start exploring your options.