If This Is A Housing Downturn, Why Are There So Many Cranes On The Skyline?
So you’ve read about the current housing glut and you’ve see stories on TV about it. And yet, you wonder, why are so many new buildings still being built?
The answers lies in timing. Building homes is not an overnight project,
It takes 3-5 years for most projects to move from Plans to Completion and, several years ago, developers were enthusiastic about the housing market’s promise.
Even 12 months ago, with hints that the market might turn, many developers were making the decision to press on.
The new buildings you see being constructed now are projects that started in 2003, 2004 and 2005. And the over-building should continue for the next 2-3 years.
The over-building is no more apparent than in Miami where 20,000 new units are underway despite a 30-year record high unit supply, says Bloomberg.
As more housing supply coming online, newly-constructed homes could present a bargain-hunting opportunity for a home buyer. It’s all a matter of timing.
