On The Market Could New Builds Hurt Your Market? These Areas Are Most at Risk
May 19, 2025
Austin Wolff, a data analyst from BiggerPockets, dives into the shifting landscape of new home construction. He reveals why builder confidence is dropping even as projects continue—hint: it’s all about survival in a tough market. Wolff highlights regions facing potential oversupply and discusses how increased new builds could lower home prices, impacting both buyers and investors. He offers strategic insights on navigating these trends, emphasizing the importance of market data for real estate investment decisions.
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Orlando's Unexpected Permit Surge
- Orlando leads Q1 2025 in permit increases, indicating builder optimism despite broader market caution.
- Some markets still expect strong demand, driving continued construction activity.
Lafayette's Record Permit Activity
- Lafayette, Indiana is rapidly increasing permits near all-time highs due to growth and demand.
- This exemplifies a market with significant building activity potentially risking oversupply.
New Builds Pressure Prices
- High new building supply pressures home prices down and may lead to builder concessions.
- New construction price drops can reduce values of existing homes, affecting investors.