Figures from the U.S. Commerce Department released last thursday indicate the housing recovery is continuing. Construction of new homes rose to 6.3% in September, along with an increase in permit activity. This is great news for the real estate industry as a whole as it shows interest from the developers to grow their communities, while allowing investors more room to invest and build wealth.
Developers are more keen on constructing multi-family homes, with permits rising 7% in September, totaling to 1.018 million permits annually. Moreover, housing starts for multi-family homes increased 18.5% from August. This increasing trend of multi-family home construction is helping families find suitable homes and the ability to live the American dream both comfortably and economically, thanks to low mortgage interest rates to help stimulate the housing market.
At Patch of Land, we strive to do just that- help investors diversify their portfolios with our short-term, 10-18% yield (based on APR over the last 6 months), asset collaterized loans, as well as helping communities grow by financing single and multi-family rehabs. What are your thoughts on the increase in new home constructions and focus on multi-family homes? We’d love to get your feedback!
