Housing is playing its traditional role in leading the economy out of recession, as the single-family built-for-rent market is experiencing bullish trends. The old American Dream is alive and well for homebuyers.
Buyer demand has remained high for single-family inventory, creating a window of opportunity for the sector. Alongside concerns over housing affordability, the single-family built-for-rent market is aggressively gaining ground. As households seek lower density neighborhoods and single-family residences, but must do so from the perspective of renting.
Apartment and multifamily construction remain active, but not at the pace it was at two months ago. As reported by NAHB in July, single-family permits increased 11.8 percent to an 834,000 unit rate, while multifamily permits decreased 13.4 percent to a 407,000 pace over June.
People want fresh air and new homes. As soon as young families have a child or get a dog, it’s “Bye apartment. Hello, backyard.” Fueled in part by record-low mortgage rates, there is solid demand for housing despite the challenges of elevated unemployment. Moreover, the stay-at-home orders from COVID-19 equally bolstered the already growing demand for suburban homes, and buyers are favoring new over existing homes.
Across all major Southwestern markets, there is a definite push for suburban living. And amid this renewed focus on the single-family market, builders and investors are rapidly concentrating on single-family home construction.
A Surging Labor Shortage
Bringing affordable housing to buyers means builders must keep their cost structure competitive. But builders are still underbuilding as they continue to struggle with rising construction expenses stemming from a chronic shortage of workers.
Single-family construction is a hot market right now, breaking records in various divisions for units sold. However, at the same time, it is a very insecure labor market. People don’t want to take a job and be the last one hired, first one fired—there is a tremendous amount of uncertainty. Every level of operation, from executives to laborers, is hesitant to make a change.
Competition for top-performing talent is surging with an exceedingly high number of searches and a significantly high number of turndowns. There must be a real motivation, and an executive search company assures candidates that their new situation is secure. From Palmdale to Reno, and other outlier markets, it is becoming difficult for firms to attract and hire operations professionals without recruitment help.
Get The Best Talent To Keep Costs In Line
The Newport Group actively seeks out the best talent often from a direct competitor, and many of whom are not actively seeking new positions or opportunities. Since this executive search firm was established in 1994, real estate, residential development and construction have remained a significant focal point.
The top-level positions within your real estate and residential development company need to keep costs down and increase your build rate—we know this. As recruiters, we also understand the motivation of our candidates to help them make a strategic change. Managing these relationships and what candidates are seeking specifically is more crucial than ever.
A lot more conversations, more time, and more understanding are needed at this time. Our search practices are not focused on qualifying or disqualifying a candidate. It is about discovering what your business needs. Our strategy looks beyond the paper.
Build For Longevity
The Newport Group is a leading executive recruiting firm with expertise in numerous industry verticals. We deploy proprietary data sets and meticulous processes to identify, recruit, place, and help retain blue-chip talent at leading companies nationwide. Turn the challenges ahead into competitive advantages alongside our help. Roles we’ve placed include CFO, VP of Construction, VP of Operations, Chief Estimator, to name a few.
Our team of recruiters is active in all sectors of real estate development, including production homebuilding, multifamily, commercial, retail, land, and asset and property management. Construction verticals include commercial, civil, telecom, gas, power, pipeline, infrastructure, as well as environmental consulting and remediation. Ever strategic in our approach, we present talent that aligns with our clients’ strategic objectives. Learn more about us here.