US: Real estate developer no longer land to build new housing

The real estate developers are unable to build new homes as they are nearing the bottom of the land where people often want to live so many people who want to buy a home in the United States have been struggling in recent years.

According to Bloomberg, many of the cities that expanded before the Great Depression were expanding, and cities with limited space were running out of space to build. This fact motivates real estate developers to focus on downtown areas where high density building is allowed. This makes new homes very expensive.

Issi Romem expert at BuildZoom said that many gaps in urban areas will soon run out of space. US cities generally expand at the edge as property developers often expand in the frontal areas, and then fill in the gaps of subsequent housing developments. As the urban sprawl in the South and South West landed construction, developers just went further.

Many cities like Austin, Nashville, Texas, Tennessee have been witnessing a boom in the inner city. Within 48 kilometers of the city center, new home sales fall between 2000 and 2015. In addition to the radius, sales are up more than 50%. The same trend appears in many other cities, including Atlanta, Phoenix and San Antonio, to varying degrees.

However, in the most expensive cities in the United States, the dynamic said reversed. Construction trends in places like New York City are tightly centered on the metropolitan area where high density building permits. These cities stopped geographically a decade ago, making it impossible for the construction industry to focus on the available space within the metropolitan area.

When empty plots can be built up increasingly difficult to find, price increases, and the ability for developers to make a profit, real estate developers often take building densities to offset land prices. This means focusing on high-end apartments that yield higher margins and only the rich get enough money to buy a flat and this creates a vicious cycle.

Recently, there are some signs of oversupply of apartments and many homeowners in San Francisco, New York have to cut expensive real estate. However, the trend of general prices in the US is still going up. According to Romem, it is unlikely that new housing in the US will be built at affordable prices. This situation makes the residents of the US cities are made difficult in the game to benefit the rich.

“As cities continue to be economically healthy, you will see the poor replaced by wealthier individuals,” said Romem. You will read the story of teachers who can not find accommodation. ”

By (Dan tri Online)