Houston apartment supply higher than demand in 2015

This won't last in the mid to long term (say five years). Mortgage rates will be going up, which will make home buying more expensive and renting more attractive, so the demand for rented housing will be catching up with the available supply in this time frame.

 

the change in lending practices after the 2007 downturn corrected that. The shift has been in multi-families favor for several years.

although I agree the current supply will be fine over time. It's not that overbuilt. Where it is, it's submarket specific and just creates opportunities for predators.

 

their research division is first class and they court all the companies looking at expansion in the Houston market.

so why do you laugh? because you're unfamiliar of what they do?

 

Explain this logic to me please. Supply and demand is why your price goes up every year.

 

Here is real the explanation

 

my heart breaks for the poors who have to live in apartments

 

I thought you didn't have a heart

 

It seems to me that its usually the B-class properties that get hurt the most by oversupply. C-class properties are competing just on price. But, for B- and C-renters, as inventory expands and prices depress, renters move up from B to A and reward the new construction and the old buildings go out of business. So new construction creating the glut will win (to a point) by pushing old construction out of the market.

I used to work for a management company, and in that experience, occupancy was pre-eminent. Now, we were managing B-class apartments, so we weren't getting fat premiums on rent, but the attitude of the property mnagers was that we rent time, not apartments. The reason is that most of the cost structure is in fixed costs -- the loans it took to buy the complex, and the capital expenses involved in keeping up with the Joneses. So getting a renter in, even at a lowball price was better than going multiple months without any renter at all. (Of course, all this is complicated by credit-worthiness and the state law about how easy it is to evict a person and other stuff.)

 

He has a huge heart and a tiny wang

 

I work in the housing industry, and right now, home builders are going haywire. Typically at this time of year, I'm looking at around 6-10 new starts per week, and right now we're closer to 20. While I do think we're in line for a correction for perhaps the first (and possibly second) quarter of 2015, I don't think it's going to extend much farther than that. The fundamentals simply don't call for a 1980s-like projection. I could be wrong, but being on the front end like I am, I typically see things about 6 months in advance, and right now, I'm just not seeing the massive slow down like some people are projecting.

 

This is how a bubble forms and eventually bursts.

 

No doubt about it you know more than me, but when new construction starts, things go sour -- don't the builders just bail mid-project anyways? I swear that's what happened a few years ago, 2006ish? Everything just stopped overnight. You had 50% completed structures sitting for years. Urban Living is still raising those cookie cutter aluminum cans 5% a month.

 

SO expert brehs, when is the best time to buy a house in terms of pricing? In 6 months time?

 

newbie stupid question.

I have been renting for 6 months, and plan to do so for another 1 to 2 years at least. I was thinking I should BUY a house after that..but I can't seem to figure out the math on why it's that much better to buy.

 

Probably because it isn't better to buy. Especially right now. Renting is genius. When you buy a house it becomes a liability, not much of an asset - unless you're renting it out for profit. The facade that home ownership is some great investment and badge of honor is a pee-pee game. Home ownership only makes sense when it makes sense. If the numbers aren't adding up... there's a reason. That down payment and interest could be going into the market.

 

Assuming land prices continue to rise in the Houston area, you will be earning equity on appreciated land value, financed primarily by debt (your mortgage).

Think of it this way:

When you invest $40,000 in a stock and the stock increases by 7% in one year, you're up $2,800.

When you buy a $200,000 house and make a down payment of 20% (which would be $40,000, the same amount as the stock example), and the property value increases by 7% in one year, you're up $14,000.

 

Nope you can't control demand and supply. Otherwise gas would be $5 a gallon.

You can try...but well demand will always determine price.

 

it's really just a lifestyle choice. assuming monthly payments isnt' an issue, you rent so you don't have to maintain your own lawn, repair appliances or leaky roof. you buy if you want the freedom to do whatever you want in your place. a lot of hidden costs in owning but you get to turn up your music as loud as you want.

 

he's a troll, that's why he laughs.