Being part of the many who have not just witnessed, but been affected by the many tragedies that have occurred the past decade, both economical and weather related, which has had a devastating effect on families and households, the founders of Make It Modular are very aware of the some of the challenges people face, particularly when it comes to housing. The factors that cause those changes are likely to continue. However, the MIM team felt there was something more we could do, something in our domain, that might allow for our clients, who are after all our family, friends, co-workers, a better chance at the home ownership dream.
The real estate market downturn created a lag in building that has yet to catch up, and in many desirable areas build out times and prices have increased significantly, while availability, affordability, and more sustainable choices are hard to find or non-existent. Thankfully, the team at Make It Modular subscribes to, and is trained in, the philosophy of find a problem and solve it, find a need and fill it – and fill it we are!
According to the National Association of Realtors, 5.64 million houses were sold in the US in 2015, and of those only 544,00 were new homes, which took an average of 8 months to build. In Austin, where we are based, there were 29,068 homes sold in 2015 at an average price of $333,558.00. With a sales inventory of less than 2 months, and 150 plus people a day moving in, and far fewer moving out, while building starts have been up the past two years, they have not been able to keep up with demand, little less replace inventory that has been low for two years and counting now.
Other target markets with growth and economy similar to Austin are experiencing similar housing woes, and rent wise, the picture isn’t any prettier, in fact, it’s worse, as those that can least afford price increases are subject to them yearly, with few choices left for some, and the San Antonio area, at least for Texas, looks to be one of the next targets for this scenario.
Housing is most household’s largest monthly expenditure, and of course one of a family, or individuals most important necessities. “Home” is our castle, our sanctuary, our place of rest, respite, and recovery. The federal government defines affordable housing as costing no more than 30% of a household’s gross income. If your housing costs are reasonable that leaves money for other expenses, including food, healthcare, clothing, education, transportation and other discretionary spending. In Austin, Texas for example, the most expensive rental market in the State of Texas in 2015, a full-time worker would have to make nearly $21.00 an hour to afford the average rent on a 2-bedroom apartment.
Despite the wealth of opportunity in the Austin and Central Texas area, a $21.00 an hour wage and an affordable living space are simply out of reach for many, and this theme is mirrored in many other areas of the country as well. However, this story can have a happy and even profitable ending for the wage earners, the communities, and the investors who know how to work in the environment that has been created. For people who are suffering, are in need, and are having difficulty finding good housing options, potential for a new beginning sits within their grasp. For a savvy investor there is an amazing opportunity to profit solidly while doing so, with multiple investments and exit strategies available, and many already available and interested markets ready to be pursued.
Make It Modular is here Now, and we are building affordable, durable, and sustainable solutions for our communities. By doing whatever part we know how to do, we can all make this world a bit better place to be, one person, one company, one effort at a time. Give us a call, and let’s talk about how we can Make It Modular together!