Single-Family New Construction: Boom or Bust in 2025?

Single-Family New Construction: Boom or Bust in 2025?

Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes

With rising material costs, interest rates, and shifting market dynamics, is building single-family homes still a profitable strategy?

In Columbus, we’re seeing strong demand for new homes, with exit prices reaching $650K and profits of $70K+ per deal. But not every market is the same. Some areas are oversaturated, while others are starved for new inventory.

What’s your experience?
* Are you still seeing strong demand for new builds in your market?
* How are you managing build costs and financing in the current climate?
* Are you shifting toward build-to-rent, or sticking with build-to-sell?

Would love to hear your thoughts—are you still building, or sitting on the sidelines?

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  • Contractor · Pensacola, FL · Member since 2017 · 317 posts · 156 votes
    1y

    Locally, in new construction, the affordable homes are what is selling.  Just doing a cursory search of listings and sold in the county, under 400k is what is moving.  Most in the 12-1600 sf range

    I will dispose of the homes based on how the numbers work best.  If I can pull enough cash out with a dscr loan, I will rent.  If not, I'll sell and take the tax hit

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