Does anyone build SFR's anymore?

Question

I live in southern California and every time I pass by a construction site it seems to always be apartment buildings going up. What happened to normal SFR neighborhoods?

Do you think that is over and the future of living is shared walls and big complexes? The amenities are nice but it feels like we are losing interest in our own space and back yards.

Todd Anderson · Answer

I believe this is yet another reason to invest in SFR.  Eventually when people get tired of sharing a wall they look to SFR's.  With home ownership feeling more out of reach and harder to attain we will get more and more families looking to rent a nice home.

There are places in the country where the majority of the building is single family, It might be a good place to look to invest.

Bradley Buxton · Answer

@Ronald Mejia

Building single-family homes often has a lower ROI than apartments. Land is expensive, and multifamily allows developers to maximize value by leasing up and selling based on cap rate.

In places like the Midwest or Texas—where land is cheap, flat, and regulation is light—SFH construction is more feasible. But in land-constrained areas like where I am in Reno, NV, we’re seeing a shortage of buildable lots as jobs and people move from CA. As a result, existing single-family homes are becoming more valuable due to the limited supply. I have investors buying only SFH for that reason.

Ezekiel Trevino · Answer

In my opinion, it depends on the area you live in and the demand. In my area, I see construction sites that are multi-family, commercial buildings, and subdivisions.

I'm not familiar with the Calaforina market, but I have heard that is expensive to own a home. It is a probably a little less expensive to live in a rental vs owning a home. Although this is just my opinion correct me if I'm wrong.