Building Market Intelligence

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Southern California New Home Market Trends and Strategies—4Q 2019

Los Angeles Negative fallout from the passage of Proposition JJJ in 2016 is beginning to be felt in the new home market as the pipeline of for-sale slab-on-grade housing projects in the City of Los Angeles dwindles. Total permits in …

Local Affordability Issues Might Surprise You

We all know that New York is more expensive than Texas and that relocating home buyers can get more for their money in the South. However, for local housing industry executives, what matters is how expensive each market is in …

Affordable Apartments? Skip the Amenities

Categories: Rental Housing

New apartment communities must have amenities, right? Not necessarily. Our consumer research shows that the most valued amenity is frequently “low rent.” A recent survey by the NMHC showed that the two top community amenities nationwide are: reliable cell reception …

Strategies for Providing Attainably Priced Homes in Southern California Markets

Affordability is the biggest red flag for builders and capital providers wanting to do business in Southern California. How can home builders provide more attainably priced homes and make a profit? Poor affordability has curbed demand and price growth significantly despite …

The Barbell Is Crushing the Supply of Affordable Homes

If you need any further convincing that we need to build more lower-priced homes, take a look at resale supply. The supply of low-tier listings (defined by Zillow as listings priced in the bottom one-third of home values in the …

Apartment Returns Shifting to Secondary Markets

Categories: Rental Housing

Secondary apartment markets and what we call surban™ locations (desirable suburban locations with urban amenities) have shifted to become outperformers. Secondary markets (determined by historical permit activity) have had less construction than primary markets and remain more affordable. These secondary markets …

E-Commuting Creating Demand for Better In-Home Office Space

39% of new home shoppers work at home at least one day per week. Almost 25% of shoppers born in the 1960s and 1970s work at home at least three days per week. This shift in work and home life …

Starter Home Solutions in Expensive Markets

High land prices in good locations generally force builders to build expensive homes. However, a number of builders have figured out how to build and sell entry-level homes to a growing demographic group. Builders are capitalizing on the rising number …

High-Income Job Growth to Determine New Home Demand

Housing affordability has become a big problem in many major metros in the country. In fact, many middle-class buyers can no longer afford a new home. Consider the following: Price/income. Home price to median income ratios exceed the historical average …

Loan Limits Stifling New Home Sales in California and Arizona

The pool of qualified new home buyers appears to be running thin in California. The median new home price now: far exceeds the current GSE and FHA loan limits in Orange County, San Jose, the San Francisco East Bay, and …