VAST INVENTORY OF UNDERWATER HOMES CAUSING LEAD SHORTAGE LEON MCKENZIE
in order to continue to build. Not only is there shortage
of homes being built, but a shortage of lots on which to
build them. Amos Maki writes, “’The lot situation in
Shelby County is getting critically low,’ said David
Goodwin Jr., owner of David Goodwin Jr. Cos. LLC and
president of the West Tennessee Home Builders
Association. ‘We know what the problem is. There is very
little coming online as far as new developed lots are
concerned.’ Some builders, including Grant Homes,
even waded into the development world, developing lots
Slow Construction Another Factor in Lead
Shortage
and other subdivision infrastructure that developers
normally handle. ‘Quite frankly we’d rather be a
homebuilder but right now we’re a developer, too,
The shortage of homes on the market has also been
because we need lots to be able to build on,’ said Kim
impacted
GrantBrown of Grant Homes.”6
by
slow
construction.
Decreased
construction means that there are fewer new homes
for people who want to move into another form of
housing. Construction has been slowed by a lack of
demand as well as challenges for builders in finding
financing in order to move forward with new
developments. Garrison writes, “Builders haven’t
kept pace, either. They’re breaking ground on 1.07
million houses, condominiums and apartments a
With a slowing of growth of the economy, fewer lots to
build on and homeowners that are underwater, the
stage has been set for investors to struggle in finding
new homes and properties to add to their portfolio.
Probate, Divorce and Bankruptcy Lead Sources
Offer Hope to Real Estate Investors
year, but the U.S. requires between 1.6 million and
1.9 million new units just to accommodate population
growth and household formation, according to the
Harvard Joint Center for Housing.” 5
New construction is an important way for the real
estate market to create opportunities for people to
move. When enough new construction isn’t being
created, then it decreases the overall amount of
housing inventory for possible buyers and sellers,
driving prices upward as supply slips. Memphis is a
prime example of where new construction has taken
a nosedive, resulting in fewer leads overall for the
total area and forcing companies to take radical steps
Savvy real estate investors have come to the
conclusion that current market forces are not that
favorable in the traditional market. There are other