Developers, Is Now the Right Time to Build?
Clearly this is an uncertain time as our environment has changed with recent events. The real estate industry is no exception, and many may be asking if now is the right time to begin projects in light of all of this uncertainty.
It just may be.
Housing is a basic need, has been and always will be. The decision to buy is usually prompted by entering a new stage of life, getting married, having a family. As a result, the housing market isn’t typically tied to swings in the stock market, as people aren’t buying houses purely on investment. It often remains a stable business even in recessionary times.
In the past forty years the United States has experienced five official recessions and outside of 2008, the average decline was only 3%. New government policies and changes in the financial lending industry have eliminated many of the predatory lending issues that contributed to the 2008 correction.
Most recently, the Federal Reserve reduced the federal funds rates to close to zero, mortgage rates for buyers and borrowing rates for developers are at historic lows. And while cities are recommending to shelter in place, residential has been deemed a critical sector by governments and remains open.
In most large California cities, though construction remains open, supply continues to struggle to keep up with demand in part due to cost of construction, lack of available land and construction labor shortages.
Proto can help. We have built over 60 modern homes in California combining a proven system-built approach with easy to use design, delivery and assembly software. You can now construct a quality custom home in half the time and up to half the cost, with a level of predictability and transparency not possible with current building methods.
And while traditional construction is often constrained by skilled labor shortages, Proto requires only assembly labor. Every component is manufactured in our LA factory, QR coded to ensure worry-free tracking and assembled on site with easy to follow instructions. A crew of five can assemble a Proto home in only 48 working days.
Less time to build means less time your project is unnecessarily exposed to fluctuations in the real estate and financial markets.
Now just may be the right time for your project: real estate is fairly resilient in recessionary times, demand still far outstrips supply, and borrowing rates are at all time lows. Proto’s proven method of building can provide you with much needed transparency and predictability in these uncertain times.
Contact us today to find out more, we look forward to partnering with you.