Obvious anticipation for rental homes, or maybe just housing period is driving the amount of building permits for multi family buildings up for the third month in a row!
Amount of Multi-Family Unit Permits Pulled:
- November 2007: 2106
- October 2007: 2733
- September 2007: 2296
- November 2006: 629
I am becoming concerned about speculation with the multi-family units in Las Vegas. While loss of non-conforming mortgage products has weakened the Las Vegas Area real estate market, prices have slid backwards allowing more people to afford a home. Will we end up with a glut of multi-family homes in the future?
Source for stats: Home Builder's Research
How is that affecting resales? That has to be tough to have so much new construction and still have existing homes that haven't sold..
Renee,
This is nothing new in New Construction. Builders have been doing this Nation Wide for ever. It is as if they all get a memo in the middle of the night and then the next morning they all jump up and all start doing the same thing. Like the story of the Cadillac dealer who opens a new store in a community of 1000 people with two other Cadillac dealers in town already starving to death. When asked why he would do that, his answer was that they were doing it all wrong. He intends to be number 1.
Not looking at the historical perspective can kill you.
I always tell my builders to Not put any money down untill we look at the current units for sale and the current number of starts on the books for the product were thinking about building.
Sometimes you just gotta wonder.
I really doubt it. One reason I say that is, I have seen more multi-generational families living together, looking for in-law suites on SFR homes, homes with more than one kitchen living area, etc...
MANY other countries and cultures live together for years! 3-5 generations in some cases, and the home is willed to the children, grandchildren etc and passes down the family line. Real Estate Prices are much higher elsewhere (COUNTRY's).
Secondly, many people want INCOME PRODUCING properties they can live in and still make a profit.