Industry News: Mortgage Rates Rise, Affordability Concerns With Apartments, and a Call For Zoning Reform in Texas
The podcast can also be found here:
Episode Overview
In this episode of The Land Development Podcast, Ryan Glick and co-host Charles Covey discuss the current landscape of land development with a focus on key topics shaping the industry. They start with a reminder about Election Day and its potential impact on the real estate and land development world. Charles and Ryan encourage listeners to get involved, stressing that the election could play a critical role in future regulations, policies, and industry trends.
The conversation then turns to mortgage rates, which have been climbing for five consecutive weeks, reaching levels that deter both buyers and sellers from entering the market. Charles and Ryan analyze the data and trends, including how rates are influencing market behavior and affecting the availability of affordable housing. Charles also shares his perspective on the cyclical impact of elections on interest rates, highlighting how these political shifts often translate into market adjustments in the months following an election.
The hosts dig into affordable housing, pointing out that rents under $1,000 are rapidly disappearing, particularly in larger cities. They explain why this sub-$1,000 rental market is shrinking and examine the impact of prolonged inflation and slowed construction. Charles discusses the financial and regulatory obstacles facing developers who aim to build affordable housing. They agree that while $1,000 rentals are theoretically possible, current market and regulatory pressures make it economically unfeasible for many developers to pursue projects at this price point.
In the final segment, Charles and Ryan explore Texas-specific challenges, especially the role of zoning in the state’s housing crisis. They highlight the need for zoning reform and discuss potential state legislation that could ease housing shortages by increasing density options. Charles explains how zoning limitations, particularly in major Texas cities, restrict the development of affordable housing types. As the Texas legislature gears up to tackle this issue, they ponder what reforms might mean for developers and residents alike.