Spike in New Home Sales and Built-to-Rent Homes
Written by Howard Chenoy, New Home Sales Associate.
According to newly released Census Bureau data, single-family new home sales increased by 25.4 percent nationally in October when compared to September. This was a similar rate to last spring when the new home market was taking off in recovery mode. The Census Bureau data shows the average price of a new home in October as $321,700, which is similar to the average price of a new home in 2006-2007 (during the housing boom).
“The strong October results return us to the sales levels we saw earlier this year and negate the pause caused by the sudden jump in interest rates,” says David Crowe, chief economist for the National Association of Home Builders.
Built-to-Rent New Homes on the Rise
Even though the price of buying new homes has gone up enough to make it worthwhile for new construction, the pool of qualified first time home buyers has shrunken due to lower wages and higher unemployment. Therefore, despite the increase in new home sales nationally, many home builders and investors are turning to single-family home rentals as an income-generating investment.
For investors, a new home can mean fewer repairs, less maintenance, and pleasing aesthetics. It can also mean a regular flow of income, likely at higher payments than a mortgage.
A big question for investors remains how long to hold onto these new home rentals before selling. In fact, some markets have already experienced the build-to-rent idea fading away due to rapidly rising home prices.
Golden Ocala’s Newest Community
With HITTS coming up, Golden Ocala’s newest community, Eagles Landing, fits perfectly into this strategy of single-family home rentals. You can get maximum rents, and people are going to stay in them for a while because they’re brand-new.
With six unique townhouse floor plans, as well as single family home designs, Eagles Landing is now accepting reservations for those looking to be a part of maintenance-free living. Be among the first to reserve your spot in Eagles Landing.