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Mosby

(16,484 posts) Tue May 14, 2024, 08:31 PM May 14

Sky-High Housing Costs Propel Construction of Rental Homes

Developers are building new houses for rent at an unprecedented rate, aiming to capitalize on the steep home prices and higher mortgage rates that are forcing many Americans to keep renting.

In 2023, 93,000 new single-family homes for rent were completed, according to estimates from housing consulting firm John Burns Research and Consulting. That was 39% more rental homes than in 2022, and the most in any year ever. The breakneck pace is poised to continue this year before easing by 2025.

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While rent growth has slowed from its double-digit-percentage pandemic peaks, rents for houses are still trending higher than those for apartments, according to JBRC. Occupancy, which has been slipping in multifamily buildings, has also been more resilient in the rental-house sector, indicating more sustained demand.

Rental builders are betting that the lowest level of home affordability since the 1980s means that even relatively affluent Americans will remain renters, squeezed by near record home prices, mortgage rates above 7% and other rising home-related costs. A large number of people also simply prefer to rent a house, builders say.

https://www.wsj.com/real-estate/sky-high-housing-costs-propel-construction-of-rental-homes-68c6098f?st=ut7kpl8a8yer3o7&reflink=mobilewebshare_permalink

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Sky-High Housing Costs Propel Construction of Rental Homes (Original Post) Mosby May 14 OP

Manufactured housing is the way to go. haele May 14 #1

haele

(12,735 posts)

1. Manufactured housing is the way to go.

Reply to Mosby (Original post)

Tue May 14, 2024, 10:06 PM

May 14

Would it be more cost effective to build modules, QA them in a factory, then bring on site and put together on a slab or leveling piers in 2/3 days; or start with pounded dirt, concrete, and 2 x 4 and 2 x 6 framing and finish in 2/3 months after several months.
My late FiL was a major proponent of quality manufactured or modular home; especially for average, affordable functional houses; unless one was going for unique architecture or historic recreation, he considered most home construction similar to having mechanics and body specialists come to your driveway and build your mini-van or truck from scratch.

Manufactured housing in California now has to include renewable and eco-friendly functionality, including solar panels and options for battery walls, as well as being up to code for earthquakes and other health and safety requirements. It's at least half the cost of the equivalent building on site, and can be manufactured, inspected, and ready to put on site in half the time.l

Haele

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