Building your dream home may be on your list for 2017, but you may want to consider the market. As of now, the home building industry is having a hard time finding funding for home building projects due to a variety of factors. Today we’re going to be looking at those factors and helping you test the waters for your home building project. Let’s get started.
Are we overbuilding?
One of the reasons that home builders are having a hard time financing their projects is because we are running the risk of overbuilding. Land is becoming more and more scarce for homes and other types of properties. There is a high demand for homes near urban and highly populated areas. These lots often come with high premiums due to their desirability.
Labor shortages can also make things more difficult.
In many cases, there simply aren’t enough people to build these homes. However, CSNBC claims that this isn’t true. They chalk up the home building difficulty to land scarcity, new regulations and delays in permit issuing. There are a lot of initiatives to protect the environment and land from various hazards. Though they are a good thing overall, they do cause a lot of problems for contracted building professionals. It should also be noted that the building workforce is not attracting younger professionals due to low wages. If there were a labor shortage, attracting younger people would be a good place to start overturning that.
What’s the problem with home building financing?
Federal regulations have a trickle-down effect for home builders. As they tighten their purse strings, so do the banks beneath them, which cause construction loans to become difficult to obtain. Banks want to work with highly experienced builders with excellent track records. This is understandable considering that loan balances for construction projects are at an all-time high, but many companies are feeling left out in the cold because of these standards.
What can be done for future home building projects?
Though the federal reserve has tightened its grip on its finances, it is possible to obtain the home of your dreams. You just have to find the right loan.
Are you looking to build a home with the right loan? We can help!
Whether you’re looking for a house to flip or a home to love, finding the money for this investment can be difficult. We at Caliver Beach are ready to help you find the right loan for your situation. Our team of highly qualified experts have hundreds of options ready for you to invest in the home of your dreams. Contact us today! You can also follow us on Facebook, Twitter, Google+, Pinterest, and Youtube!