Personal preferences evolve over time—including how individuals view their ideal living situations. The millennial generation is gradually maturing and as a result are steadily transitioning from being predominantly a rent-based demographic to aspiring homeowners. The current state of the national housing market, however, means there is insufficient levels of existing inventory to accommodate the growing demand for single-family residences. This has led to astronomically inflated home value surges that have effectively priced out a considerable number of aspiring homebuyers from realizing their dream of owning their own properties. The stark reality is that first-time homebuyers around the country are all running into the same issues: limited inventory, numerous offers on outdated homes, exorbitant prices and delayed renovation timelines thanks to ongoing supply chain issues.
The good news is that the construction industry is slowly but surely rebounding from the COVID-19 freeze. With the number of new housing starts increasing month after month, relief could be on the way for frustrated would-be homebuyers as the market begins to balance out. The uptick in development activity also presents a great opportunity for real estate investors seeking to expand and diversify their portfolios. Ground-up investments offers a viable alternative for investors struggling with the present limited inventory.
When it comes to real estate, it all comes down to location. The same holds true for ground-up construction projects. Investors should check out the following top-performing markets for potential areas to focus their ground-up construction efforts in order to optimize cash flow and ensure consistent profits from a long-term perspective.
Boise is primed as one of the most promising long-term investment markets in the entire country. Home values are skyrocketing thanks to depleted inventory levels and record low interest rates—with the average listing price currently well above $500,000. Homes are appreciating at nearly 4.5% per quarter, which equals approximately 20% annually. Factor in a population and job growth that is three times the national average and you have the ideal spot to break ground on a ground-up investment property.
The already sizeable Dallas metro area is expected to grow even more in the near future, meaning there will be continued demand for housing options. Economists report that around 340 people relocate to the Dallas-Fort Worth area every single day and the population is forecasted to double in size over the next 15 years. Properties are set to appreciate to the tune of 10-15% in three-years’ time, meaning new builds will only increase in value to add to the potential returns from a real estate investor’s perspective.
Atlanta’s population has expanded more than 14% in the past ten years, which has resulted in a consistent demand for housing. The capital city is Georgia’s main economic hub, meaning there is a steady stream of high-earning employees looking for quality living arrangements—something that ground-up construction directly caters to. Nearly 500 people move to the Atlanta area on a daily basis and the overall population is set to grow by 2 million by 2030. The economy is ranked 8th in the country in terms of GDP and numerous Fortune 500 companies are located in Atlanta. All these attributes make this a safe and potentially lucrative site to own an investment property in.
Get Started Today!
Current market dynamics are extremely favorable for ground-up construction investment projects. Don’t miss out on this limited window of opportunity to tap into this growing trend. Express Capital Financing specializes in crafting customizable and efficient funding solutions for a wide range of new build investment projects. Thanks to our streamlined underwriting process and wealth of experience assisting successful real estate investors, Express Capital Financing can get you the money you need to keep your construction project on schedule without the need for multiple loans or unnecessary delays. Contact us today to learn more about the Express Capital Financing difference.