Builders are paying higher wages/subcontractor bids (reported by 84 percent of builders) forcing them to raise home prices (83 percent) and making it difficult to complete projects on time (73 percent).
According to new U.S. housing market research by Zillow, the combination of rising home prices and interest rates creates a doubly challenging environment for would-be home buyers, making monthly mortgage payments on even modestly priced homes more of a financial burden.
The Monte Carlo analytical method provides a robust approach for evaluating risk-adjusted returns by simulating performance volatility caused by variances in multiple components of the investment return, such as: cap rates, operating income (including rental rates, vacancy rates, and operating margin), capital expenditures, and interest rates.
Seattle led the nation in office construction completed, accounting for 20 percent of all office projects finished in major downtowns of the USA, based on research from commercial real estate firm JLL. The construction boom has transformed the downtown area. Compared to 2010, the area’s housing stock has surged 56 percent while office space has grown 19 percent.