REAL ESTATE CHALLENGES
We all know that having an adequate supply of housing could also be a continuing challenge. There’s an almost 7 million rental unit shortage, also as a 3.8 million single-family home supply shortage.
THERE’S A SIGNIFICANT HOUSING SHORTAGE.
Many markets within us are desperate for cheaper rental options.
THE COSTS OF CONSTRUCTION ARE ON AN UNBROKEN RISE.
Building materials, land, and labor costs have risen dramatically, and costs aren’t expected to return to pre-pandemic levels.
EVERYTHING WAS CHANGED BY COVID.
People’s working methods.
Where people would really like to live.
The pandemic, alongside a slew of other factors, has heightened how people choose where to live.
WE PRIORITIZE BUYING PROPERTIES (WHERE PEOPLE WANT TO LIVE) FOR MUCH LESS THAN THE COST OF BUILDING NEW ONES.
- Acute shortage of housing options primarily due to the lack of new construction since the 2008 market crash.
- US Median Single Family-Home Price is projected to increase 16% (Year over Year) in 2022*.
- Construction Materials are projected to increase by 17.5% (Year over Year) in 2022*.
- US Wage Growth is lagging and is only expected to increase 5.1% (Year over Year) in 2022*.
- Increased movement to the South is causing substantial price rises in many of these markets.
These elements influence the amount of individuals who rent rather than purchase. We expect the mixture of several reasons allows us to provide rental accommodation while making excessive profits.
There’s no shortage of demand for rental housing, and that we will maximize these trends by acquiring properties within the path of growth throughout the Southern us.
Core Investment Projects
APARTMENTS AND INFLATION
In November 2021, inflation increased by a shocking 6.8%, the best rate seen in nearly 40 years.
*2022 Multifamily Outlook
DURING TIMES OF HIGH INFLATION…
- Real estate can generate both passive and consistent cash flows.
- Values are generally supported by a lack of availability.
- Private real estate values in the United States have risen in response to rising interest rates.
Investment in Real Estate at an Inflation Inflection Point
THE SOUTHERN US
WHY ARE SO MANY PEOPLE AND BUSINESSES RELOCATING TO THE SOUTH?
- Reduced Fees (Personal & Corporate).
- In support of the business.
- Supportive to landlords.
- Reduce Living Expenses.
- More sunlight. There will be less snow.
- Less Government Interference (Think “Covid-19 lock downs”)
- Employers are more ready to provide remote work options.
Looking for properties that offer additional value in states that are pro-business and landlord-friendly, which may include:
FLORIDA – TEXAS – NORTH CAROLINA – SOUTH CAROLINA – GEORGIA – KENTUCKY – TENNESSEE – ARKANSAS – OKLAHOMA – MISSISSIPPI – ALABAMA