The High(er) Cost Of Money May Slow Down The Start Of Approved Residential Developments


The High(er) Cost Of Money May Slow Down The Start Of Approved Residential Developments
By Scott Rogers • November 2, 2023
Over the past few years, thousands of potential new housing units have been proposed to be built in the City of Harrisonburg and Rockingham County. Some of these new developments are under construction, but many are sitting idle as undeveloped land that is approved for a new housing development but with no clear indication of if or when construction might begin on those new homes. One of the biggest potential limitations on when these new homes might be built is -- the high(er) cost of money -- current interest rates. Developers and builders are not going out to get traditional mortgages in order to build out these communities -- but they almost always do need to borrow money from a bank to start a new housing development. That money goes towards infrastructure (roads, water, sewer, sidewalks) as well as towards the construction of the housing units -- all of which are bills that have to be paid before the first home is sold or rented. So, will we see all of these thousands of proposed or approved new home developments be built over the next year or two? Almost certainly not... and one of the biggest things holding back the development of these new communities is the current economic climate with high(er) interest rates across the board. If/when interest rates start to decline, perhaps we'll then see some of or more of these new developments being built. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 24, 2024 (unless otherwise noted).
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