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Started By
Message
I’m a Home Builder, Wanna Take A Survey?
Posted on 5/23/22 at 7:18 pm
Posted on 5/23/22 at 7:18 pm
I’m sure to get the farthest thing from the truth out of the posters on this board but it’s worth a shot. I’m a mid-sized residential builder in North Ms that needs input on housing affordability from out of state potential home buyers. I barely survived the 08 disaster and have had 2 surprise bad years since and I would like to avoid that nightmare again. The last 2 years have seen record overall sales with record low profits outside of 2008. Massive material and labor increases and severe market fluctuations in lumber/building supplies have more than negated the price increases passed on to buyers. I’ve raised pricing 40% in the last 2 years and it still leaves sub 5% profits after I have priced and sold every successive house at 5% over the previous sales/appraisal value. It seems insane to me that 40% over two years is not enough, but that seems to be the case. Now that rates are climbing, lumber is falling hard but all other materials are still rising. I need to maintain price and realize lumber savings to hit my 12% targeted profit but at these rates my current pricing is becoming what I’m afraid is unaffordable.
My question is this:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Discussion in comments for the naysayers, I can back up everything I say. I’m just trying to get the temperature of this bull crap we are all about to have to choke down when it all goes to hell
My question is this:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Discussion in comments for the naysayers, I can back up everything I say. I’m just trying to get the temperature of this bull crap we are all about to have to choke down when it all goes to hell
This post was edited on 5/23/22 at 7:20 pm
Posted on 5/23/22 at 7:19 pm to T4
quote:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Yes, but I wouldn't want to.
Posted on 5/23/22 at 7:20 pm to T4
quote:
I’m sure to get the farthest thing from the truth out of the posters on this board but it’s worth a shot.
That's a fine way to get participation by insulting the fine members of this board, baw.
Posted on 5/23/22 at 7:21 pm to T4
quote:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Yes.
Posted on 5/23/22 at 7:22 pm to T4
quote:
I’m a mid-sized residential builder in North Ms
My question to you is: where do people in North Mississippi work? There seems to be so little in the way of industry, service or otherwise.
Posted on 5/23/22 at 7:22 pm to LegendInMyMind
quote:
where do people in North Mississippi work?
I’m going to guess Memphis
Posted on 5/23/22 at 7:23 pm to T4
I have seriously considered selling and renting...I'm above you price range..but knowledgeable about the macro US market and not far from you
Posted on 5/23/22 at 7:23 pm to T4
quote:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Yes, it will only be on a 15 year for that much a month.
Posted on 5/23/22 at 7:23 pm to T4
quote:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Yes but no way in hell would I ever do that.
Posted on 5/23/22 at 7:24 pm to T4
quote:
Can you afford to pay $2,200 per month for housing with 25% or less of your income?
Da fux you selling? My mortgage is 1800 a month and that's on a 2600 sq ft three bedroom complete gut job to the rafters and joists five minutes from downtown Columbia, SC.
Posted on 5/23/22 at 7:24 pm to RummelTiger
Yes.
But why are you still building with sun 5% profit margin. You’re taking on all the risk and doing a shite ton of work with little to no money in your pocket.
Can you do some presales with a cost plus contract?
But why are you still building with sun 5% profit margin. You’re taking on all the risk and doing a shite ton of work with little to no money in your pocket.
Can you do some presales with a cost plus contract?
Posted on 5/23/22 at 7:25 pm to LegendInMyMind
Desoto County has been one of the fastest growing county in MS for a couple years
Posted on 5/23/22 at 7:25 pm to T4
Yes, but would basically be house broke.
ETA: they are still building in my neighborhood, base price for my floor plan when we built was 320k. Base price for the same is now 561k. No bullshite.
We have finished basement, expanded back yard, fence, etc. We're selling for double what we built for in 2015.
2765 sqft
600 sqft finished basement
1200 sqft garage
.75 acre lot
It is insane.
ETA: they are still building in my neighborhood, base price for my floor plan when we built was 320k. Base price for the same is now 561k. No bullshite.
We have finished basement, expanded back yard, fence, etc. We're selling for double what we built for in 2015.
2765 sqft
600 sqft finished basement
1200 sqft garage
.75 acre lot
It is insane.
This post was edited on 5/23/22 at 7:28 pm
Posted on 5/23/22 at 7:26 pm to T4
Base salary $100k with 25-40k commission. I’m a cheap arse with monthly bills and that would be my max with insurance and taxes included.
Posted on 5/23/22 at 7:26 pm to Centinel
quote:
Da fux you selling? My mortgage is 1800 a month and that's on a 2600 sq ft three bedroom complete gut job to the rafters and joists five minutes from downtown Columbia, SC.
You know there are people that have larger houses out there, right?
Ours is 4,200 s/f, so we do pay a tad bit more on our mortgage.
Posted on 5/23/22 at 7:27 pm to hubreb
I was in Hernando a few weeks ago, fell in love with the town! Not sure if that's Desoto County.
Posted on 5/23/22 at 7:28 pm to T4
Gross income or net? That’s quite the difference.
Posted on 5/23/22 at 7:29 pm to hubreb
quote:
Desoto County has been one of the fastest growing county in MS for a couple years
I guess. I was thinking more NE MS. I used be in that area regularly and there's just nothing there in the way of business. It seems like most people worked at the Ashley Furniture plant.
Posted on 5/23/22 at 7:29 pm to LegendInMyMind
Auto Manufacturing, Furniture Manufacturing, 60 Miles from Memphis. Not much in the way of tech related jobs. Top performing schools in the area, no need for private schools,
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