From The Desk Of The CEO | February 24, 2023
What’s Going On in the Housing Market?
From the Desk of the CEO
The housing industry is undergoing some significant changes that have impacted how and where people are choosing to live. Here at Stark Enterprises, we have spent a lot of time researching, innovating, and integrating some solutions that directly address some of these changes. As such, and ahead of the upcoming Land & Homebuilding Forum I’ll be speaking at in Nashville next week, I thought it would be a good opportunity to lay out some of my thoughts on the matter.
Despite the recent pullback, it’s been a very strong seller’s market. High demand and low supply of available homes has led to increased competition among buyers. This has resulted in a median sales price for an entry-level house in excess of $315,000, which is unattainable for many prospective buyers.
For this reason, and others, we’re strong believers in the build for rent revolution. The shifting landscape of for sale homes has created a strong demand for new, more affordable housing options that work better for potential residents. Housing that doesn’t require as much upfront investment. Housing that doesn’t burden buyers with unwanted risk. Most importantly, housing that doesn’t compromise on what’s expected of a new residence – and in many respects exceeds those expectations!
Knowing and understanding your tenants – which just so happens to be the topic of our panel discussion at the Information Management Network Build-to-Rent Land & Homebuilding Forum – is the most important factor in all our residential discussions, and one that needs to be taken very seriously considering the tenor of today’s market. Everything from the exterior and interior design to the in-home and broader property amenities, needs to be carefully and thoughtfully curated to fit the needs of the residents and of the surrounding community.
Things like in-unit laundry, attached parking, pet policies, fitness centers, updated appliances, outdoor living spaces, and private driveways have become absolutely essential to prospective residents nowadays. These are the areas where renting really outshines the alternatives of either buying an older, out-of-date home or renting a commodity garden-style apartment that falls short on the features and amenities now expected in the marketplace.
In addition, renting provides flexibility, allowing individuals to move more easily and frequently without being tied down to a particular property or city. It requires lower upfront costs in comparison to a large down payment and now-costly mortgage. It offers fewer maintenance responsibilities, and provides amenities such as a pool, gym, co-working space, conference center, playground, and more, that homeowners may not be able to afford or even find in a home.
That being said, it’s not always binary. Different markets show different trends which impact the housing market in various ways. What works here in Cleveland, Ohio may not work in Ocala, Florida. That’s why it’s so important to keep your finger on the pulse of the local community and those who are in the market for a new place to call home. If you’re in the industry, I’d highly recommend attending conferences like the Land & Homebuilding Forum. It’s a great way to stay connected and share insights with experienced, knowledgeable industry professionals. 
Sincerely,
Ezra Stark
Chief Executive Officer