At Rebel Capitalist Live, Ken McElroy touched on an existential problem the housing market is facing that would act as a tailwind in the medium-term for real estate investors - there is a giant, disproportionate demand for housing, while the supply continues to decrease. The only way to make money on new residential, on the other hand, is for it to be Class A luxury mansions or condos. There’s simply too much of a logistical headache, expensive price of labor, price of supplies, and delays that make anything lesser unprofitable. This used to be the complete opposite, as the mass manufacturing of apartment complexes was quick and easy, but if you look around yourself in places like Austin or San Antonio these days, all they’re building is high-end luxury condominiums and apartments.
The Coming Housing Crisis
The Coming Housing Crisis
The Coming Housing Crisis
At Rebel Capitalist Live, Ken McElroy touched on an existential problem the housing market is facing that would act as a tailwind in the medium-term for real estate investors - there is a giant, disproportionate demand for housing, while the supply continues to decrease. The only way to make money on new residential, on the other hand, is for it to be Class A luxury mansions or condos. There’s simply too much of a logistical headache, expensive price of labor, price of supplies, and delays that make anything lesser unprofitable. This used to be the complete opposite, as the mass manufacturing of apartment complexes was quick and easy, but if you look around yourself in places like Austin or San Antonio these days, all they’re building is high-end luxury condominiums and apartments.