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Every analysis, breakdown and explainer, newest first.
Housing 101
The rent on an existing apartment is set by the market, not by what it cost to build. New construction is the link between cost and market rent. This lesson explains how that link works and why it matters.
Housing 101
The owners of a new building put in the money that absorbs losses first. This lesson explains why that money has a price, how the price is measured, and what happens to construction when it is not paid.
Housing 101
Two different questions: what rent a landlord can charge (set by the market) and what rent a new building needs (set by cost). Where market rent falls short of required rent, nothing gets built.
Housing 101
Revenue, vacancy, operating expenses, net operating income, yield on cost, cap rate, DSCR, cash-on-cash. The pro forma decides whether a building gets built. If the math does not close, nobody builds.
