Breaking out of the Single-Family Home "Box"

An editorial from John McManus at Big Builder Online says that the downturn in the economy is pushing developers to break out of the single-family housing box and experiment with mixed-use.

1 minute read

June 15, 2011, 6:00 AM PDT

By Tim Halbur


McManus takes a look at the economic outlook for the construction business over the next 1-2 years and concludes that the market will stay down. However, the more adventurous, he says, will try multifamily housing:

"Most home builders have steered clear of multifamily businesses because the financial modeling and capital structures necessary are entirely different. But considering the fact that investors are clamoring to put smart capital to work in multifamily, and at least some builders have the skill sets or the adaptability to play in that real estate and construction game, it's perhaps time we'll see some builders who've coveted a multifamily operations unit--Toll Brothers, for instance--at least give it a hard look."

Tuesday, June 14, 2011 in Big Builder Online

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