Demand for new multifamily housing units has started to reflect in home builder activity. Homebuilders
have shifted their attention towards single-family residences. The amount of multi-family build starts fell
25% from July to August and the number of permits for new multi-units fell 17% each month. This news
is a double-edged sword where yes, the construction industry is starting back up at booming speeds, but
they are starting from where they left off from when the COVID pandemic hit the industry; causing
massive furloughs, layoffs, stalls in project developments. Due to the industry taking a standstill for the
past few months, so have their lumber suppliers. Suppliers were also halted due to COVID-19 because if
nobody is building then who are they to produce the lumber for? This caused the demand for lumber to
suddenly skyrocket and along with it came the increase in lumber price which will inevitably be passed
onto new home buyers.
With this information, it’s best to keep in mind that there are pre-built homes currently on the market.
Meaning that you’re still in the running on getting your hands on a good income-generating investment.
If demand for new multi-family units is dropping, then we can also say the same thing for old multi-
family builds; from this we can figure that prices are dropping steadily for these types of properties
signaling an opportune time to jump in on a good deal. Contact Lee-Chandler today and inquire about
how you can start generating income on multi-unit properties and hedge them against the current
demand of the market all while taking advantage of the low Fed rates.