People really struggle to comprehend the difference between the folk who build housing and the folk who rent it out. High housing prices generally does not mean higher profits for housing developers.
People really struggle to comprehend the difference between the folk who build housing and the folk who rent it out. High housing prices generally does not mean higher profits for housing developers.
When housing prices are high, land value is high, and labor is more expensive. This eats into margins. Cheaper construction costs will yield greater aggregate returns for builders.
You’re absolutely wrong about that. Are you a developer? Because I am. Developers typically hold on to properties for 10 years, the cashflow proforma we forecast shows the revenue projections for disbursement to investors for 10 years, then we sell. Yes, high rents absolutely benefit the developer