Difficulties with entrance into the industry, including the rising costs of land, labor, and materials were among the primary challenges to single-family homebuilders at the beginning of the twenty-first century. Drywall and lumber prices, which tend to be somewhat unstable, were particularly inflated, while increases in land costs have been less pronounced, though some strong markets, especially in southern cities, have experienced significant escalation (Business & Company Resource Center New Single-Family Housing Construction).
In addition, contractors were also battling rising expenses associated with burdensome regulations and material costs. Although the generally distressed industry forced many builders across the nation into bankruptcy, contractors in some regions of the country fared much worse than others (Business & Company Resource Center New Single-Family Housing Construction).
Infinite Horizons, LLC is aware of the challenges facing an emerging company entering this industry and understands this will have a potential effect on the market value of our products. Infinite Horizons, LLC believes utilizing local, minority- and women-owned contractors for these small projects can reduce construction costs for our projects. We anticipate that most buildings in our portfolio will require moderate rehabilitation, and the turnaround time for putting the properties on the market will be less than a year.
