Area we operate, the city and county governments keep voting down multi-family zoning. There's only been one townhouse project opened in the last 5 years "starting in the low $400s" for 960 sq. ft. 2 bdrm with no garage. Ludicrous. Then again, our single family 2,200 sq. ft. homes are more like in the $700s right now. That's if you can find a lot that's actually buildable. Market inventory in this area has been dogshit for some time and has really affected us. I have more clients "waiting to find a lot" before they commit than we have actively building and in development combined.
The whole argument about boomers downsizing creating space in the market...it'll only make space at the top end, and those cash buyers will price out and overwhelm the small home market. It's a stupid argument and I'm sick of hearing about it. There has to be inventory for families making less than $100k a year or local economies are going to go belly up. I'm seeing "help wanted" signs pop up again in business windows as if we were back in the pandemic. Employees are being priced out of living where the work is.
Then again, i see the material and subcontractor invoices flow through and it's no wonder. Masonry material prices alone are going up again effective feb 1 (brick, block, stone, mortar). 3rd increase in the past year, and up 25% overall in 2 years.