Here are the top five homebuilding industry trends to watch for in 2024:

Growth in New Construction

While interest rates have had a big impact on the demand for new construction, we expect to see growth in our industry in the coming year, especially if rates go down by mid-2024 as predicted. In this scenario, we will see the many people who have remained on the sidelines jump back into the new construction market. This release of pent-up demand should drive a surge in growth among new home builders. In the meantime, while interest rates are high, builders are getting creative, trying to help to find ways to get buyers into new homes.

Diversification

At Camelot, we have increased our investment and involvement in single family rentals as a part of a broader strategy of diversification. I would expect other builders to similarly look at diversification of operations to anticipate fluctuations in the real estate market. One way we’ve diversified is through a partnership with Arcadia Communities on a number of beautiful single family rental communities that fulfill the need of consumers who can’t afford substantial down payments or higher interest rate loans, but still desire a single-family home lifestyle. Our company’s diversification efforts also include the launch of our rebranded custom home division, and the addition of introductory luxury communities and high-end short-term rental properties.

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