Siebert Williams Shank’s Post

Why San Diego's residential real estate values will continue to remain strong San Diego's residential real estate market is expected to remain strong, primarily due to a significant shortage in housing supply. This insight comes from a recent San Diego Union-Tribune article by David Garrick, titled "Report: S.D. far behind housing goals." You can read the full article here. Below are the essential points summarized from the article's information. The city's ambitious goal to construct 108,000 new units by 2029 is falling drastically short, especially in affordable housing. This shortfall is most pronounced in middle-income housing, vital for the city's workforce, where only a fraction of the needed homes have been permitted. Efforts to accelerate construction, such as density bonuses and streamlined approvals, have seen limited success, with new housing predominantly concentrated in select neighborhoods. This clustering limits broader citywide housing availability, exacerbating the shortage. The strong demand, coupled with the acute housing shortage, especially in affordable segments, is set to keep real estate values high. In short, San Diego's residential real estate market is expected to remain a solid investment over the next decade, driven by persistent supply challenges and unwavering demand. The Fidelis Private Fund's portfolio, which is focused on loans secured by residential housing in San Diego County, is strategically aligned to remain strong based on the housing supply shortage boosting property values.

Why San Diego's residential real estate values will continue to remain strong San Diego's residential real estate market is expected to remain strong, primarily due to a significant shortage in housing supply. This insight comes from a recent San Diego Union-Tribune article by David Garrick, titled "Report: S.D. far behind housing goals." You can read the full article here. Below are the essential points summarized from the article's information. The city's ambitious goal to construct 108,000 new units by 2029 is falling drastically short, especially in affordable housing. This shortfall is most pronounced in middle-income housing, vital for the city's workforce, where only a fraction of the needed homes have been permitted. Efforts to accelerate construction, such as density bonuses and streamlined approvals, have seen limited success, with new housing predominantly concentrated in select neighborhoods. This clustering limits broader citywide housing availability, exacerbating the shortage. The strong demand, coupled with the acute housing shortage, especially in affordable segments, is set to keep real estate values high. In short, San Diego's residential real estate market is expected to remain a solid investment over the next decade, driven by persistent supply challenges and unwavering demand. The Fidelis Private Fund's portfolio, which is focused on loans secured by residential housing in San Diego County, is strategically aligned to remain strong based on the housing supply shortage boosting property values.

🏗️ Exciting News from the Construction Finance World! 🚀 📊 Built's Latest Report: Top 20 Zip Codes for New Housing Starts in November 2023 📍 Key Highlights: Miami’s South Beach (33139) leads the charge as the zip code with the most construction activity. Nashville has 3 of the top 5 most active zip codes and a total of 4 in the top 20 These top 20 zip codes represent $108 million in construction activity! 🔍 Deeper Insights: Built's unique position: With its comprehensive construction loan administration platform, Built analyzes a significant portion of the U.S. construction spend, giving an early glimpse into housing market trends. Top 5 Neighborhoods: Along with South Beach, Seattle's Woodland Park/Green Lake, and Nashville's Antioch, Cane Ridge, Hickory Hollow, Green Hills, Forest Hills, and Belle Meade, East Nashville stand out for their vibrant growth. 🌇 What This Means: - These zip codes showcase a diverse mix of housing markets, from energetic metropolises like Miami and Seattle to suburban gems like Nashville and Dallas. - Despite a slowing overall market, these areas are buzzing with demand, highlighting unique local factors driving this growth. #ConstructionFinance #RealEstateTrends #HousingMarket #BuiltSoftware #MarketAnalysis #Miami #Seattle #Nashville #InnovationInConstruction 🏠🌆📈

My Initial Thoughts on Today's Housing Deal Baruch Edelkopf, Renowned Brooklyn Investment Sales Broker The One aspect I am most excited about is the governor extending the 421a deadline for another six years. While we have seen an uptick in land trading with the 421a benefits grandfathered in, there have been significant challenges in securing construction financing, especially for larger projects. Lenders were concerned about the projects finishing on time and were not enthusiastic about the fallback condo value. This extension will help spur development, especially in the tertiary markets. Good cause eviction is finally here, and I believe thatits initial concept, we can work with. However, I am more concerned about the changes and amendments that may come in the future. Interestingly, the governor did not refer to it by name; instead, she mentioned that "tenant protections against "price gouging"" would be included. The new 485x tax abatement is much needed, but I have yet to see the full details. I am all for permanent, long-term affordable housing. We just have to make sure the abatement will incentivize and make financial sense for developers to build. We can't rely on private dollars to be put to work to fix the housing crisis, if we disincentivize them. Private capital needs to make a return on their investment, and they should be able to do so by providing quality housing. I was disappointed about the new Individual Apartment Improvement (IAI) regulations. There was a strong sentiment in the market that there would be a pathway to market-rate rents. While this was a step in the right direction, we need to see more relief for the city's rent-stabilized housing if we expect private landlords to keep up with the increase in costs while maintaining their buildings. https://lnkd.in/eQghmCpa

USC Forecast Predicts Rising Rents and Commercial Real Estate Financing Struggles - WestsideToday Contact me to discuss the latest scoop in real estate! #realtor #realestateagent #homebuying #homeownership #realestateexperts #realestatemarket #firsttimehomebuyer #homesweethome #dreamhome #Sellyourhouse

The Federal Housing Administration is taking a significant step towards addressing the housing market's inventory shortages by increasing the loan threshold for large multifamily development projects. This move, the first of its kind in nearly a decade, is expected to stimulate the supply of housing nationwide. Learn more about this strategic shift and its potential impact on the real estate market. #RealEstate #HousingMarket #MultifamilyRealEstate

Nice recap article by Business First… in my opinion, a very accurate assessment of where we are today in commercial real estate development in the Buffalo MSA. While residential sees a bite but has been resilient to fight through very stiff competition in home sales, commercial projects are much more amplified from the rate hikes, given the scope of project size and need to bode time for rents to maintain pace with costs. For commercial, this is a pro’s market.

LIHTC Offers Financial Resilience for Multifamily Developers in Times of Distress It’s a tough time for much of multifamily development, but the Low-Income Housing Tax Credits (LIHTC) program offers incentives that make much-needed affordable housing comparatively easier to achieve under the current economic conditions. Building is expensive and financing is tight in the current multifamily market. However, as it has for the last 30 years, the LIHTC program provides solutions that increase the ease of creating and sustaining affordable housing, even when the overall multifamily market faces challenges. The program not only promotes the construction and acquisition of housing but also enforces conditions that help maintain the stability and preservation of affordable properties. The program is also needed to address the demand for affordable housing. The National Low Income Housing Coalition estimates that extremely low-income households represent 25 percent of the nation’s 44.1 million renters and reports a shortage of 7.3 million affordable and available rental homes. Historical Financial Resilience “The LIHTC asset class is resilient, if not countercyclical, under challenging economic times,” says Kathleen Balderrama, executive vice president of affordable equity at Walker & Dunlop. The firm typically sees a foreclosure rate of under 1 percent on properties supported by LIHTC. https://lnkd.in/dywN3p9t Sponsored by Walker & Dunlop #cre #commercialrealestate #lihtc #multifamily #affordablehousing

There are many factors contributing to the housing shortage. This is an aspect we tend not to focus on as much in the legislative arena - but if a developer can’t build profitably, building just isn’t going to happen. That’s why I’m spending a lot of time between sessions focusing on expanding on my prior experience in corporate and private equity real estate to acquire as much knowledge as I can about available housing finance vehicles.