The housing market crisis created a market of cheap foreclosed properties and HUD houses for sale, but it also resulted in a big number of people in North Carolina opting for rental homes instead of putting their money down on home purchases.
Despite the vast supply of low-priced dwellings in various areas of the state, including Charlotte cheap foreclosures for sale, most people who would have normally taken advantage of the low prices and record mortgage lows are reportedly renting apartments instead. This trend has resulted in a series of development projects that involve apartment properties.
One area that has taken advantage of homebuyers' reluctance to purchase North Carolina cheap houses for sale is Greensboro. In the city, over 1,000 apartment units are being planned, with more projects already in the final construction stages. With the huge number of apartment construction projects happening in the area, some real estate developers are wary that it might result in too many supplies for too little demand.
According to them, rental home developers should not be too carried away by the fact that fewer people are buying foreclosure houses for sale to conclude that these non-buyers are seeking rental units instead. They cautioned that prior to building apartments, developers should first thoroughly examine the neighborhood if the demand justifies the projects.
With thousands of HUD houses for sale, foreclosed dwellings and houses being offered through short sales, apartment and other for-rent properties are expected to face tough competition, even though majority of consumers are believed to prefer rental housing nowadays. This trend, according to some analysts, can change rapidly within a year or so.
As of now though, apartment developers are taking advantage of what they perceive to be a great market for rental properties. Greensboro is currently home to several of these development projects, including a Friendly Avenue and a Bridford Parkway project by Mega Builders and another couple of development efforts from Signature Development.
So far, apartment development projects in the city are estimated to have a construction cost of over $80 million. This estimate is based on the approximate per unit cost of an apartment or condominium which is pegged at around $65,000. The units are projected to compete with HUD houses for sale, foreclosed homes and other cheap dwellings being sold in the area.
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