It’s a tough time to be selling a home. That’s also true for home builders, who are seeing canceled orders and dwindling interest among would-be buyers.
Confidence among home builders dropped for the 10th month in a row in October to a 10-year low , according to the National Association of Home Builders. Traffic among prospective buyers, one of the components that measures confidence, fell significantly, the association said, as buyers look at mortgage rates above 7%.
As a result, builders have had to get more creative with incentives, including rate locks, rate buydowns and upgrades on kitchen appliances, Lovallo said. Additionally, builders who offer spec homes built in advance of orders or homes that first-time buyers can move into quickly can better “compete with the existing stock in the market,” he said.
Home builder stocks are trading at a fraction of book value, Lovallo said, at about five times earnings. Constraints on labor, along with bureaucratic red tape related to land and permits, all bog down the process of building homes, he added. — John Lovallo, UBS analyst “There has to be some kind of change that’s brought to this industry,” Lovallo said. “But I would argue that 10 years from now, we’re going to be building homes very differently than we are today.”
Forget this 'build for rent' market. That's not going to add stability at all to the economy. We need to think long and we need to establish everyone in decent housing so that we can be the shining example to the world. The market is full of untapped potential.
These suburban dwellings are not sustainable to begin with. Joke is on all involved.
Nwo agenda. No personal homeownership
Asked drywall salesman about local construction, it’s down.
Keep voting for democrats and this is what you get
Now that corporations aren’t buying homes to horde and flip creating artificial demand the market will right size. That and the highest interest rates in10 years.
My friend started building a luxury Condo in Nashville Tn almost 2 yrs ago. It is now going to be worth about 150k more than she paid at the start. Builder is dragging his heels hoping she will back out bc he knows he can sell it for more. Must be a Red state thing 🇺🇸
Renters should create LLCs and co-own property
BlockAllAds ElonIsANazi
Anything to keep you from being independent. No place to run.
You will own nothing and be happy.
BlockTwitterAdvertisers
So now renters are having to pay more if they have a pet.
Rent to people who will squat and not pay rent for 6 months when some democrat tells them they don’t have to.
How about you try… build to afford(ability)?
Once again, the middle class has to bare the brunt of rich people’s decisions. Middle class has to choose between high rent or crappy home that needs work. Rich have to choose next vacation/car/upgrade.
Exactly what they want!
Build to rent is exactly what all the BlackRocks, the government, etc want. Entire communities for rent that keeps middle class from owning homes and building equity/wealth. All part of the plan.
This is worth keeping an eye on as the housing crunch continues to grow and expand. I do believe housing, or the lack of affordable housing, will be one of the most critical issues we face worldwide very shortly. Migration to the cities will make it worse!!!
Six or seven bedrooms plus 6 baths the norm in new homes in my zip code. Tore down 1000 sq ft to build 5000 sq ft Recent prices $1.5 to $3.5 million. County tried to legalize 2-4units per lot but developers convinced SFH owners to kill it. No tears for developers.
I did the math using my 2020 interest rate vs today. My monthly payment (P&I) would have been 50% more if I had todays rate.
Plus the experiment of giving free checks gave no in entive to work so no labor
Potterville reminds me of the Jimmy Stewart movie
We need to start selling apartments as homes. People are already paying the same amount of rent as it would be to buy a home. They can build credit and equity . The idea of a single family home is untenable for society
I hope not. Big conglomerates don’t need to be renting overpriced homes monopolizing the market, when we need reasonably priced homes so people can have access to home ownership.
This will only last until next year first quarter.
You’ll own nothing and be happy ~ Klaus Schwab
Wasn’t that their plan all along
Great time for private investors as well.
Knew this party would end. 68 years old , seen this movie before.
Sounds like , In other words welcome to the new government housing 🙄
The consumers are tired
Lower your Damned prices to pre covid
Where are all the huge homes being built as the only option that all the commenters here are saying? I’ve built homes 4 homes now in 3 different areas and smaller options were available. 3 bed 2 bath 1500 is common. Even 2 bed 1300 in S FL.
The “build for rent” market only benefits rich fat cats and keeps first time homeboys out of the market Piss off
Finally get these god damn prices to normal
Kingston, NY (located at the foothills of the Catskill Mountains) lowered rent 15%. Have to sign 1 year minimum lease to qualify for the rent reduction. Boxabl looks promising if they increase the square footage 1,000 - 1,500. Low cost, efficient home. DR Horton is involved.
Ewww… 🤮
GREED.
MARKET WATCH IS A JOKE!!!
Oh great more trash companies like Blackrock will be buying entire subdivisions because “you will own nothing and like it.” I can’t imagine this was one of the goals of these 🗑️ Democrats
lol... wait till the cap rate drops and Blackrock starts dumping multifamily inventory... this is nothing compared to what's coming
Who tf can afford $800k for a 1st home? It shouldn’t be $250/300k. Not 800k That means BOTH partners should be making 200k each a year for an 800k house. Its absolutely ridiculous
Section 8 single family housing coming to a suburb near you.
Our senator Merkley here in Oregon has presented a bill to prevent mass ownership of rental properties!💙💙
Make quality housing cheaper and 3d print homes instead. Hempcrete slurry is carbon negative.
Reading MarketWatch is like pulling over and asking a stop sign for directions
Cheaper & lower income housing is a better idea!
Maybe stop building housing farms.....
That’s what will literally lock out a generation from home buying
They should stop charging &500k for a cardboard house with very little land.
Not a bad idea.
Building homes in area’s where water is running out as well.
Also get rid of ridiculous HOA’s and HOA fees
Lower your price and ill buy
What do you expect when investors are driving home prices up.
These comments are hysterical. Basically a bunch of whiny millennials upset with homebuilders bc they don’t make enough money to buy the homes they sell. Work harder, get a better job & make more money so you can afford a home. Essentially what every prior generation has done.
In Essex County NJ, development after development of apartments continue to be built. All with high rent prices, and mostly one or two bedroom plans, too small for a family with more than one child. It’s gotten crazy.
Who wants a $350k home for $500k at 7% for 30 years? No one. Builders greed and Politicians incompetence. We need term limits.
We’ve been trying to find a builder for 2 YEARS to add a new master suite on top of our house. (200k project!) Can’t even get one TO CALL US BACK. So… screw ‘em. Hope they go hungry.
There a lot of energy codes and if you build on the coast a lot of hurricane codes. The codes change every year. Holders have to do more and more every year. This drives the cost up.
You won’t own anything and you’ll be totally happy, work for your entire life. - satire
Peep my ass up in that roof layin shingles uglaa
Lower your asking price then.
I just bought a new house that a young family built but then couldn’t buy because of high interest rates. I felt sorry for them, but it’s not just interest rates. House prices went up 50% suddenly due to greedy developers.
you will own nothing and be happy ... or else.
“You will not own anything and you will be happy”—WEF.
Reminds me of 2008 housing crash
The housing market is way overextended in prices and due for a correction with interest rates rising. You already see prices dropping.
Builders will be low balled into building venture capitalists the richest folks on the planet rental HOA homes. That’s the new plan in the sunbelt. They will stil give you lots of money for that special area home though too.
But not in NYC where landlords can no longer do criminal background checks
Love to hear this, They abandoned Realtors when things were booming. Well not all of them.
Those ‘houses’ should go for about 60K. $350 a month. Cheaply built, cheap looking … kinda like those neighborhoods built in the sixties. I’m betting the builder get their money back, all of it, on the sale of jus one of these beauties.
People don’t mind so much burning things to the ground that they can never own and only are allowed to rent at disgustingly high prices.
If you want to build an economy and country, make home/land ownership realistically available to average citizens. Build to rent is a sick idea that will leave America far worse off as a country. Govt and corporations know this.
Booming where I’m at right now.
Thanks Democrats.../
Perhaps they should have done market research
The Great Reset in motion as planned.
Yes we know.
Because new homes are built using the cheapest materials, installed by the cheapest labor. I wouldn’t want to buy a new home from these builders.
Renting destroys generational wealth.
Rents are way to high.
not that many builders can carry that much debt.
You get what you vote for
Tell the hacks at Black Rock buying up subdivisions. This shouldn’t be allowed.
The democrats have our economy so screwed up it will take years to fix it.
YA, RIGHT, WHO CAN AFFORD THE RIDICULOUS RENTS
Prices are coming down. Good news.
I wonder if some sort of lease-option model would help. 🤔
Eww
We all saw this coming. With high inflation followed by the Fed’s endless rate hikes current home interest rates have put potential buyers on the sidelines. Unfortunately the housing decline is just the beginning.
I’m blocking Twitter advertisers. Bye.
Fits right in with WEF agenda. “ you will own nothing and be happy”.
BFR is cancer. Folks really need to refuse these turds so they stop building them.
It’s easy lower prices and you’ll find buyers if you go into a loss and need cash instead of buying back stock raise money by share offerings until things turn around see easy problem solved
Bubblelicous
Ugh you guys didn’t learn from last time. Buyers are cancelling pressure materials suppliers to drop the price. No one’s going to qualify for the mortgages. Renting isn’t going to be your solution. The materials costs need to follow raw material adjustments.
The “build for rent” market for Canadian investors profit?
Builders are not adapting to the change market demand & labor force realities. Today’s consumers don’t want McMansions they’re in debt to forever. They want modestly priced, smaller better designed homes. Values since Covid have changed; people want experiences + home ownership.
You must mean the build for “you will own nothing and be happy”crowd.
Here’s an idea… how about building homes that first time home buyers can actually afford, without taking years’ worth of equity up front? You drive an hour west of DC metro, literally in farmland, and they’re building *townhomes* and charging $600-800k!
Stop building homes so close together.
The Build-to-Rent market is finding its way in Florida. Worked on a couple projects here already. But I will say, those communities aren’t my favorite…
Sorry but builders have been over pricing since the pandemic. They have made a killing.
Cutting the quality of the original build.
Blocked and boycotted.
It's the buyers who are cancelling, NOT the developers.
Horrible
Sounds like another Real Estate Ponzi Scheme in the making. Stay away from this nonsense. Do not throw money away.
“build-for-rent”
I don't miss phone calls everyday wanting to buy my house now thankfully
Thank Biden
Try building 2 and 3 bedroom home in sizes that some Americans can afford. Starter families and first time buyers don’t all need a 4-5 bedroom, two living room McMansion. Get some $200-$250k 1000-1200 sq ft homes out there.
That's not good
The market has eliminated the middle class and point the one percent oligarchy tasked to the republicans. Working daily to establish a thrifty poor working class. A sinful process.
Oh hell no
Well yeah cause you can’t tank an economy on purpose and expect the market to just be the best ever. It’s a stupid mentality.
And then rent rates collapse and the real pain begins.
You will owe your soul to the company store, in the form of perpetual serfdom to your bloodsucking corporate landlords
May the bankrupt developer waves come in FTX style.
Slow down, in building new homes, creating less inventory, will setup the next housing boom.
Rates are dropping, so many will be able to secure loans
Technology not infused? Have you seen the new energy codes? Lighting? Building materials? It’s an innovator’s dream.
Doesn’t profitability in the rental sector hinge upon rent actually being “paid?”
This recent trend towards Mini homes fools no one! I saw this coming a mile away! We’ll all be put in cubical apartments, in the city or, those who can still afford it, a small rental in the burbs. That will be what’s left of the middle class. Dark days ahead!
Not really, it's intentional. The WEF made the statement that you will own nothing and be happy. Part of that is banning home and property ownership. All will belong to the state. Just as a communist state would have it.
This is Republican economics we boom bust collapse in perpetuity until the destruction is so bad that the entire system fails & the masses finally uprise & tear it down
Fed killing supply and building industry now causes current and future structural inflation. Building never recovered after 2008 and will take another step down now. Housing long bull we are cheap as % of GDP chipboard to many places. CA UK AU
JPMWealth you already know
Come on foreclosures I need that 75% bargain
Fair price will help.
Get rid of our government
Looks like N Korea
These rental developments are taking away the last thing workers can do to have a little money in old age - home ownership. Do not rent - buy only
Well maybe u should look at the problem then Inflation! Which is being cause by run away central banks expanding debt crisis and raising rates to crush an demanded which hurts us not inflation!❤️
More of Biden the destroyer destruction of America
Good luck w the BTR crowd. Why go through his headache when you can get high single digit unlevered returns in fixed income mkts now
Let’s Go Brandon
Last Industry Mag article I saw reported Build to Rent segment of single family residential construction was around 75% in the hottest construction markets.
Raise the rates were no normal person can afford a loan sure that’s going to help our economy
In other words you will own nothing and like it
Ppl don’t want to buy overpriced houses at high interest rates.
Aka market correction
“You’ll own nothing, and be happy.” -Democrats and the WEF. Evil.
Great so we can get even more private equity landlords owning more homes. I am a capitalist pig as good as another but at some point it ceases to be fair and some neighborhoods can, should and will ban the corporate owners renting model.
Stop building all soulless McMansions & construct a variety of homes so people from all income levels have choices at home ownership.
Thinking that build for rent is important is asinine. That’s how we play monopoly not how we increase the wealth of the American people. Affordable homes and easy to obtain mortgages are important. If you can afford rent you can afford a mortgage. Simple.
F investors! America can't afford their F rents!
Sell homes people can afford and we will buy em. There are literally millions of families waiting for first time homes but they’ve been snatched up by investors and Airbnb. We’re left out. Affordable isn’t 400k.
The featured photo is of suburban tract homes in a neighborhood built for cars, not people. It should come as no surprise that people don't want to live like this. Try building dense, affordable housing in places where people actually want to live instead.
The build to rent is part of the no personal homeownership NWO agenda WAKE UP
Predatory housing markets were by design.
By the time they build to rent , mortgage rates fall and the dilemma is over
Bargain hunting as small builders collapse is an excellent path to wealth. The guy i know who did this well retired with a 40 car garage in san diego,
I sincerely hope that every bloodsucker involved in the build to rent market goes bankrupt. I hope they lose their own homes in the fallout.
Gen Z doesn’t want to own anything. Uber instead of car. Rent instead of buy. Put everything on credit and pay the minimum. No need to pay back loans. Go bankrupt. Get forgiveness. Repeat.
Calling for new tech in home building - I think that’s you coverbuild 😀
Interest rates were artificially low for too long. The pandemic induced bubble had to burst. The houses I see being built are all too high end and large for a rental market.
Good maybe material prices will start to come down. You’re going to see a lot more people building their own houses with cost and prices where they are.
Oh man I feel terrible for those poor developers that can’t find a buyer
If the cost of renting is the same as buying they still gonna lose, lower rent prices
Build for rent is not going to work with interest rates doubling in 6 months and no end in sight. DCF doesn’t work. Wondering how all these apartments being built are going to get to break even with 7.5% commercial loans and high build costs.
Built for rent is dem plan. Started under Obama. They don’t want us owning anything.
130,000 a year and I can’t buy a house I could if it was interest free loan from the government ha ha that will never happen . Open border and welfare for immigrants not my idea of America
FJB
Build-for-rent. I hope that is not what the future awaits to milenials and beyond.
Renters is not what home owner communities want.
Absolutely NO! If our Elected officials do anything for the US citizens they will tax this kind of biz model into oblivion. Owning a home and building equity allows people to live out their senior years in peace. U guys are vultures
Housing prices have inflated enormously the past year or so. Combined with higher mortgage rates, a real estate slowdown is inevitable. Prices will come down.
This is true I was offered $50k in incentives today plus special financing
Mortgage interest rates and prices of new homes are pricing buyers out. We’ve seen this happen time and time again, like 2006-07.
Or you all could build smaller homes that cater to younger and/or smaller families. But then what hedge fund wants that?
You will own nothing, ride a bicycle to work and be happy what the regime provides for you.
Should be focusing on affordable housing for ownership , not rentals
An interest rate driven event... The party in power spent outrageously, and it took a year for inflation to show up. Now, we have 40 year high inflation and home industry destruction. It's a shame, it didn't need to happen, and can be reversed by voting for economic competence.
We need a 50% correction at least