Cashflow Real Estate & Money Show with RJ Pepino and Dave Payerchin

E28: Why New Construction Is Slumping: The Surprising Truth About Today’s Housing Market


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In this episode, we’re diving deep into the current state of new construction and the housing market, particularly focusing on the rising costs, fluctuating home prices, and the reasons behind a slowdown in new builds. I explore why builders are pulling back, how high mortgage rates and building costs are impacting buyers, and why affordable housing remains a hot commodity. With fresh data from sources like Yahoo Finance and Forbes, we break down the numbers and offer insights on how to capitalize on this market, especially in the $150,000–$300,000 range, which is still booming. I’ll also share tips on finding off-market deals and investing in properties with high demand, all while avoiding the traps of speculation and high-risk spending.

 

Whether you’re a seasoned investor or new to real estate, this episode is packed with practical advice on how to navigate the current housing landscape and make profitable investment choices in a challenging market.

 

Episode Highlights:

[0:00] - Introduction

[1:01] – The current state of new construction and why sales are slowing.

[2:10] – Factors driving high new-build costs and the impact of mortgage rates.

[3:27] – Why affordable housing is a promising sector for investors.

[5:13] – Building costs across the U.S. and how they influence pricing strategies.

[6:48] – The advantages of investing in existing inventory for higher profitability.

[8:21] – Insights on the national median home price and what it means for buyers and investors.

[10:19] – Strategies to cash flow properties within the $150K–$300K range.

[10:54] – How to negotiate deals with motivated sellers and find off-market properties.

 

Key Takeaways: 

1. New Construction Slowdown – Rising mortgage rates and increased building costs are causing a significant slump in new home sales, making it challenging for builders to remain profitable.

2. Affordable Housing Advantage – Investing in affordable housing within the $150,000–$300,000 price range is a smart move, as demand remains high and buyers are eager for properties in this category.

3. Cost Challenges Across the U.S. – Building costs vary by state but are universally high, pushing up prices and making new construction a tough sell, particularly in non-affordable housing markets.

4. Focus on Existing Inventory – Investors should prioritize existing homes over new builds to access properties at more affordable prices and with better cash-flowing potential.

5. Profit from Off-Market Deals – Finding motivated sellers and negotiating off-market deals are key strategies for acquiring properties at a discount, allowing investors to either flip or hold properties with substantial profit potential.

 

Links & Resources:

• Free Launch Coaching Program: CreamLaunch.com

 

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Cashflow Real Estate & Money Show with RJ Pepino and Dave PayerchinBy RJ Pepino and Dave Payerchin