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Title: The Hidden Opportunity in New Home Construction Amidst Housing Crisis
The housing crisis in America is reaching a critical point, with affordability becoming a top concern for voters, especially among younger generations. A recent Redfin survey revealed that 91% of Gen Z considers housing affordability a crucial factor in determining their vote. But why is this issue so pressing? Let’s dive into the numbers and explore an often-overlooked opportunity in the real estate market.
The Current Housing Landscape
Experts agree that without increased construction and less restrictive zoning laws, this problem will persist. As voters, it’s crucial to focus on state-level solutions rather than just national politics.
The Challenges Facing Home-builders
Inflation is significantly impacting real estate and lending:
Interestingly, new homes now account for 31% of homes on the market – the largest portion for any third quarter on record. Yet, we’re still about 6.5 million units short of meeting current demand.
A Tale of Two Successful Real Estate Professionals
I recently spoke with two industry insiders who are thriving despite these challenges:
The Key Takeaway: An Overlooked Opportunity
While large builders like Lennar and Pulte are under-building to maintain high home prices, smaller contractor/owner/builders are experiencing a boom. They can’t build fast enough to meet the demand left unaddressed by larger competitors.
This presents a unique opportunity for loan officers and realtors. By partnering with small construction companies and contractors, you can tap into a thriving market segment with less competition and higher potential for sustained business growth.
Action Steps for Industry Professionals
Remember, when it comes to voting, consider candidates who are pro-housing and support sensible regulation. What’s good for housing is ultimately good for the economy and your future in the real estate industry.
In conclusion, while the housing crisis presents significant challenges, it also offers opportunities for those willing to adapt and explore new niches in the market. By focusing on new home construction and working with smaller builders, real estate professionals can position themselves for success in this evolving landscape.