Luther Ragsdale

Factors Affecting New Housing

The development of the real estate industry is listed as one of the nation's priorities. According to a study by the New York University, in the past ten years, the number of renters in the U.S. metropolis increased from 136.4 million to 158.4 million, or 5 percent. In major cities like New York and Los Angeles, it is common to have higher demand for rental units, but real estate coach, Luther Ragsdale, says on his Active Rain blog that this growth in demand is spreading to other parts of the country that are experiencing population growth. Ragsdale investigated the supply of new-build housing, the general condition of the real estate market and the major impacts, including whether there are enough apartments and what influences their prices.

For most of us there comes a time where we start planning a family, and therefore look for an apartment or a house. A home loan from the bank is the most common option for making that happen, which means that the price is crucial in the selection process. 
 
"In such situations every dollar counts. The mortgage rate dictates the purchase of the apartment, and the person getting the home loan needs to adjust the mortgage rate in order to pay off the house," says Ragsdale.

Many couples decide to narrow their search by looking only at new construction housing. Luther is a real estate expert with many years of experience, and he says this is becoming increasingly popular among young people, but also stresses that new homes have considerably higher costs. There are three factors that drive the housing prices. The overall health of the economy is one of the key factors that affects the value of real estate. No matter whether you decide to rent or purchase new housing construction, the area you choose could also have a significant impact on the price and its worth in the future.

"The formation of the price per square meter is the most affected by the location itself, the cost of organizing the building site, and the price of construction", says Luther.

The buyers profile is getting more diverse. There are families, but there are also foreign investors who are buying apartments, and investing in real estate. The size and scale of the real estate market can be an attractive and lucrative market for many investors.

For more detailed information, visit Luther Ragsdale's blog.

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