Financialization hits the Denton housing market | Business | dentonrc.com – Denton Record Chronicle

December 18, 2021 by No Comments

Financialization hit the local real estate market again in November. Denton home sales slid for a second month, falling 18% from a year ago. Pending contracts for sales in Denton slid for a third consecutive month, down 14% year-over-year. A return of seasonality is not the only reason home sales have fallen recently. The local real estate market is suffering from the overt financialization of America’s housing stock in general.

Prices have been chopping back and forth near record highs. I have been helping some local home sellers cash in on these lofty prices before the Fed pulls the rug on liquidity. Local buyers are still finding it a tough market to navigate. A general lack of inventory and an acute lack of affordability have taken a toll. Available inventory dipped back below a single month of supply in November. Builders are sitting on a large backlog of construction projects, but readily available home supply is still thin.

While publicly traded home builders keep whining about the housing market being underbuilt, they have been enjoying fat profits and buying back a lot of stock. There’s a reason you don’t see a lot of spec new home inventory sitting on the ground, and it’s not because of pervasive supply chain issues. It’s really an issue of priorities.



Aaron Layman


You may have read about Taylor Morrison Home Corp. and Christopher Todd Communities teaming up to build 316 new single-family rentals near Loop 288 in Denton. These are precisely the type of affordable, single-family homes the local real estate market needs. Sorry, but no soup for you, prospective home buyer. This is another build-to-rent community where the developer and builder are searching for yield in our hyper-financialized housing market. There were several thousand homes like this started across the Dallas-Fort Worth area during the past year.

The Dallas Morning News repeated the ridiculously false narrative that these homes were “aimed at residents who can’t afford to purchase a home but want a traditional home lifestyle.” Nothing could be further from the truth. These homes are aimed at yield and profit for the project participants. It’s not really too difficult to understand. There are plenty of financing options and programs available to prospective buyers for these types of homes, but instead you hear a talking point regurgitated from an industry press release.

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Source: https://dentonrc.com/business/financialization-hits-the-denton-housing-market/article_0572d287-ccc5-509c-9768-a3bd83de54f8.html

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