Increased Costs of Construction in the Long Beach Island Real Estate Market
Building a New Home in the Long Beach Island Real Estate
Since Hurricane Sandy made landfall at the end of 2012, new construction in the LBI real estate market seems to have exploded! Nearly every street seems to have a new homes, a trend caused by both required repairs thanks to the damage caused by Hurricane Sandy and the simple fact that there is tremendous upside potential when building a new home. Unfortunately, thanks to recent storms in Texas, Florida, and elsewhere, rising construction costs in the LBI real estate market or something we must contend with.
Rising Construction Costs in the LBI Real Estate Market
The simple law of supply and demand has created a scenario where building a new home in the LBI real estate market will simply cost more money than it did a year ago. Specifically, there have been increases in the cost of materials that are needed elsewhere, for example framing material and lumber. While the cost is certainly increased, it is still not cost prohibitive to build a new home on Long Beach Island. The Long Beach Island real estate market derives much of its value from land alone. As the market has been improving over the past several years, largely driven by the surge in new construction, it is still quite possible to purchase a teardown or vacant lot, construct a new home, and retain the 20% to 30% equity position you could a year ago.
Buying a New Home in the LBI Real Estate Market
Building a new home in the LBI real estate market has many advantages. Apart from being able to design your home to your specifications, there is, as I mentioned above, a excellent equity position based on the current market trends. This acts as an insulator against a potential market downturn. The key is to find the right location with the right potential for new construction, and of course purchase the site at the right price. Understanding rising construction cost in the LBI real estate market is a pivotal component to understanding the greater investment potential in the area. For more information about building a new home on Long Beach Island or the LBI real estate market in general, please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | email@example.com
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