Most Multi

/in , , , , , , , , , , , , , , /by

There are more multi-family residential properties under construction than at any time since 1974.

 

890,000 properties with 2+ units are currently being built across the United States.  This includes both for-sale product, and for-rent product.

 

Additional supply is clearly beneficial for both buyers and renters and will hopefully relieve some of the housing affordability issues.

 

So, why are there so many multi-family units under construction?  There seem to be three key reasons.

 

1.  The rental market is especially undersupplied with product and developers see this opportunity.

 

2.  With the increase in residential prices, multi-family becomes the only option for many first-time buyers. 

 

3.  Supply chain constraints are causing extended construction timelines.

The post Most Multi appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Most Multi

/in , , , , , , , , , , , , , , /by

There are more multi-family residential properties under construction than at any time since 1974.

 

890,000 properties with 2+ units are currently being built across the United States.  This includes both for-sale product, and for-rent product.

 

Additional supply is clearly beneficial for both buyers and renters and will hopefully relieve some of the housing affordability issues.

 

So, why are there so many multi-family units under construction?  There seem to be three key reasons.

 

1.  The rental market is especially undersupplied with product and developers see this opportunity.

 

2.  With the increase in residential prices, multi-family becomes the only option for many first-time buyers. 

 

3.  Supply chain constraints are causing extended construction timelines.

The post Most Multi appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Staggering Stat

/in , , , , , , , , , , , , , /by

By definition, a real estate market is balanced when there is 4 to 6 months of inventory currently for sale.

Anything less than 4 to 6 months means a Sellers’ market, anything more means a Buyers’ market.

For example, if there are 1,000 closings per month in a market, the market would be balanced if 4,000 to 6,000 homes were available for sale.

Here is a staggering stat for you…

At the current pace of sales, the Front Range market would need 6 to 7 times more inventory for the market to be balanced.

This is why we don’t see any sort of significant market correction or anything resembling ‘the market crashing.’ Bottom line, the market is still undersupplied.

Here are the numbers:

• Larimer County has 441 properties for sale and would need 2,200 to be balanced.
• Weld County has 322 properties for sale and would need 2,000 to be balanced.
• Metro Denver has 3,023 properties for sale and would need 20,000 to be balanced.

The post Staggering Stat appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

5.5 Million Short

/in , , , , , , , , /by

New home construction is behind by 5.5 million homes over the last 14 years.

Since 2007, new home starts have lagged significantly behind the long-term average.

The Census Bureau started tracking National new home starts in 1958.

Between 1958 and 2007, an average of 1,102,938 new homes were started each year.

Between 2007 and 2020 the average fell to 708,186 which represents a shortfall of 394,752 per year.

That adds up to a total shortfall of 5,526,525.

The under-supply of new homes is of course a significant reason why the market is under-supplied overall.

credit Inman News as the source of this story

The post 5.5 Million Short appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.