One of the main problems of the real estate market in the US right now is that construction companies elementary ends, the number of building permits in areas where people want to live.
This is especially true of cities with high economic performance, experts say.
The fact that they are running out of space for construction. These realities are forcing the company to focus on city centres, where it is permitted development with a high density.
«But at some point the vacant land in attractive urban neighborhoods over,» he told Bloomberg BuildZoom chief economist ISSI Romem (Issi Romem).
According to Romana, historically, cities grew outward, as the builders have developed arrays on the periphery. This applies, for example, cities such as Austin, Atlanta, Phoenix, San Antonio, Dallas. There within a radius of 30 miles from the city centre, from 2000 to 2015 first-year new home sales has fallen, but the outside has increased by more than 50 percent.
But in the most expensive cities in America the situation is the opposite. In places like new York, focused on clusters in the centre of the city, where zoning rules allow the construction of high density.
Like new York city ceased to expand your geography a few decades ago, and the builders had to focus on finding built-up areas in the existing boundaries. Because finding these sites has become increasingly difficult, land prices have increased significantly.
As explained, Roman, land prices tend to be offset by a more dense construction. In many cases, this means a bid for luxury apartments, but not many people can afford to buy. Turns out the «vicious circle».
In General, experts say, the recent surplus of new luxury apartments makes landowners in new York and San Francisco to reduce the prices of expensive housing, but this trend will not last long.
«What happens next depends on whether to rewrite the rules of zoning to provide a more dense construction, especially in areas that are currently limited to residential single family homes,» adds Roman.
However, in his opinion, it is unlikely that new housing will be built at affordable prices. «As long as the economy in these cities is thriving, the wealthy will displace the poor. You will read articles about that teachers can’t find a place to live,» says the economist.
