We're an independent research provider and consulting firm focused on the housing industry. We compile and analyze an unprecedented volume of information to keep our clients informed. Utilizing our trusted analysis, our clients can:
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With the emergence of single-family rental homes as an institutional asset class, the concept of replacement cost has received a lot of attention lately. We are proposing a set of definitions to bring clarity to the term replacement cost, which means different things to different people and can thus be misconstrued in the market.
To see how important it is to define replacement cost, take a look at the graph below, which shows two things:
Watch out for a housing renaissance in the Chicago metro area. The region massively overcorrected in this last downturn and just recently joined the recovery. New home revenue fell 91% from 2005 to 2010, and most private builders went out of business.
We recently opened an office in Chicago to take advantage of the resurgence in this region and the rest of the Midwest. Midwest builders supply new homes to the 23% of the US population who live in the region. While the future of US housing demand will skew toward the South, the Chicago metro area and other Midwest cities should experience solid construction growth and home price appreciation over the next few years.