With the current issues in the housing market, investors and builders have good reasons to look into mixed-use construction as a source of profitable work.
Tough market for homebuyers
Recent news from the housing market indicates that homebuyers, especially first time home-buyers are facing a combination of reduced housing inventory and climbing prices. Despite growing demand for housing, pending sales are actually dropping, for lack of reasonably priced inventory.
Tough times for builders
Some experts point to government regulations on construction that are stifling builders’ abilities to construct new housing at a decent profit. For example the addition of environmental impact rules for new developments, new worker safety regulations such as the new OSHA silica rules as well as other regulations.
It is argued that these conditions are discouraging housing developers from building anything less than luxury homes, encouraging would-be first time homeowners to turn to renting, at least for the time being.
The trouble is that these market conditions will likely persist for a while. Regulations won’t magically go away. It will take several months to create the necessary inventory of new homes to accommodate the market. Wages compared to the cost of living have been stagnating for decades and there isn’t any visible factor that could change that.
If you are looking at this from within the construction industry, you wonder where you can look for better profit and durable prospects. This is where Mixed-use construction comes in.
- Combining commercial and residential housing, it appeals to investors looking to balance their portfolio with divers sources of revenue.
- Developers can profit from increased cooperation from municipalities, who see an opportunity to reduce infrastructure costs compared to what they can get back in tax dollars.
- Builders also profit from the close combination of electrical and plumbing and other services to reduce their costs.
From a home-buyer’s perspective, mixed-use development is very attractive as well. It creates a pleasant, walkable community with convenient amenities. It combines city and suburb living in a way that is especially appealing to the biggest new homebuyer target out there: millennials. It is in growing demand.
Some urban centers have already jumped on this trend quite strongly. Among the top localities seeing a strong increase in mixed-use construction: Boston, Los Angeles and Washington D.C.
TRIFORCE® open joist is the type of product that is ideal for mixed-use construction: Rigid and lightweight, designed for both residential and light commercial use as well as widely distributed and competitively priced. See how TRIFORCE® was used in a recently mixed-use project in Maine.