The Housing Market in 2017 – Renovation, Rehabbing, New Construction, Flipping, Rentals
BullNBear Services is New Jersey’s premiere dumpster rental, demolition, and waste disposal provider. With the housing market roaring ahead in 2017, let’s take a moment to look at the big picture. 2017 was an amazing year for the real estate market. Demand remained steady, and supply is still tight, with the amount of homes available for sale below long-term averages. Existing home sales were up 2.9% since 2015, and the inventory of existing homes for sale is 20% below its long-term average (according to Morgan Stanley’s 2017 U.S. Housing Outlook). Although single family housing starts have picked up, new home inventory remains at its lowest levels since the 1970s, and the increase in starts won’t have a real impact on tight supply.
This has led to a continuing steady rise in prices and an acceleration in appreciation of properties. The formation of new households, which had dropped during the financial crisis that began in 2007, has now returned to levels near historical norms. All of these forces combine to create a solid market throughout 2017. And, as a substantial portion of the population currently aged 15-34 transitions into the stages of life where they form new households, they too will need new housing. In just the next five years, estimates show that demographic forces will create 6.5 to 6.75 million new households.
Another force balancing rising interest rates could be loosening of credit for homebuyers under the new Trump administration. Credit has been slowly loosening over the past few years, but could ease further as a result of deregulation efforts under Trump, driving the demand to buy higher.
And how does the fix and flip market fit into the picture? With more than half of the U.S. housing inventory being over 35 years old, there is huge demand for rehabs and renovations, creating an opportunity for fix and flippers. Construction of new homes is still at historic lows, which allows flippers to play an important role in providing move-in ready homes to buyers who, for whatever reason, can’t manage construction projects and renovations themselves.
Overall, the past year was a fantastic year for home flipping, which hit record highs, with property investors battling the same low inventory issues that have been affecting the home-buying market and some major markets offering up fewer deals. However, property investors continue to find value by seeking out aging inventory with rehab potential in major markets and going after deals in slightly smaller markets.
For example, Multifamily Executive reports:
“Renters, meanwhile, will begin to look for Class B properties as a way to save money, causing an above-average surge in rents. This effect will trickle down, and Class C assets will experience strong rent growth as well, although not as strong as Class B. Many traditionally affordable markets will likely see stronger rent growth than they have witnessed in more than a decade because of a lack of new deliveries in their particular submarkets. Construction costs prohibit new development beyond top-tier rental markets without outside incentives”
If you need a dumpster for demolition, construction or junk removal, give us a call at 973-476- 3297 or go to www.BullNBearServices.com
When demolishing or tearing out rooms before renovating, you will generate a significant amount of debris. In most communities, sending construction materials like lumber, gypsum, metal, and glass with your weekly garbage service is not allowed! Rehab and construction waste must be disposed of properly. BullNBear Services is the perfect solution- we can support you on dumpster sizing, timing, and removal of your waste completely.
An excellent choice for mid- to large-scale home remodel projects is renting a dumpster, or roll-off container – this is the practical choice for homeowners.
- Homeowners can rent rolloff containers the same as contractors do for big projects.
- Optimal size for home remodeling is about 20 to 25 yards.
- Names: “Container” and “rolloff” are both acceptable terms for these large metal “boxes”.
- Yard Sizing: Containers are rented in standard cubic yard sizes. Instead of saying “cubic yards,” though, you can also say “yard” or “yarder.” For example, if you were renting a 30 cubic yard container, you would say that you want to rent a “forty yarder.”
Basic Container Sizes
10 Cubic Yard Container
A metal box 12 feet long, 8 feet wide, and 4 feet high. A ten yarder will not get you very far if you are doing any sizable home remodeling work. At best, you can use it for tearing out a small bathroom.
20 or 25 Cubic Yard Container
A box that about 22 feet long, 8 feet wide, 4.5 feet high. This is about the minimum size container you should ever get. This would accommodate the waste from a small kitchen or full bathroom without cramming and crushing.
30 Cubic Yard Container
This fits in front of most houses without too much complaint from neighbors. You can fit carpeting, drywall, and wood in a 30 yarder without too much trouble. Also, if you are disposing of concrete or rock, you will need a larger container since you cannot fill the container up very high.
Despite changes in the political landscape and economic forces as we head into 2017, the outlook for the housing and fix & flip markets remain strong. BullNBear Services can help you with you renovation, rehab, flip, or new construction project.
Our demo services allow us to take care of a significant portion of your project, so you can focus on the more important details. We will also manage the delivery and pickup of our trash rental dumpsters. We work quickly, effectively, and reliably throughout the process. Give us a call at 973-476-3297 or contact us through the convenient form on this page, and let us make your project easier!