2024 Sioux Falls Residential Construction Market

With Inflation the talk of the media for 2022 into 2023 and it's affect on everything housing related, new opportunities emerge every time the market shifts. Staying ahead of the market is always the best route for business owners, home owners, and real estate investors. So the question becomes, what is the change in the market we should plan for?

• Affordable Housing Focus

As home prices and rent has skyrocketed the past few years people's focus on housing expenses will be very impactful for the foreseeable future. Consumers will look to find the best value they can on one of the most expensive budget items. Interest rates increased that expense both for home owners and Investors who then lease to tenants. The cost will continue to rise, which means an opportunity to make money will arise.

• Housing quality Focus

During the COVID pandemic many people that saw an opportunity to buy a home and there was a large increase in buyer competition. In many cases buyers had to waive inspections to buy a home, and sellers inevitably got lazy. Sellers expectations on maintenance was reduced and I think we will see less quality in existing homes being sold going forward. First time buyers especially don't like that. They want a "turn key" home.

How can Business Owners, Real Estate Investors, and Home Owners make the most of the shifting market?

1. Fixing up homes: There will be a flood of homes that have "potential" and those with the skills to see what a house could be can buy homes fix them to their potential and sell to those first time buyers who want that turn key home that isn't the same costs as the new construction home. This could be a current home owners who will see value in fixing their home before selling (business owners can help with this before people sell). It can also be investors with the gift of being handy who buy a run down house and fix it up for the next buyers.
2. Find Partnerships: Not every person can fix up a home, not every Handyman has the money to buy and fix properties. Most people have to start using other peoples specialties and expertise. Working with Professionals like your real estate agent, mortgage lender, or construction person is a great place to start.

In a place like Sioux Falls where the community is growing, Construction will be hot, but a growth that is likely to see the largest growth is remodeling existing homes. Builders are still cautious to get stuck with a home sitting on the market for long periods of time if they aren't able to provide enough value compared to homes that were build much cheaper a few years ago.

Good luck in 2024 making the most of the shifting markets. Stay ahead by staying connected to your local professionals.