News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Mark Heschmeyer / CoStar / June 3, 2013
Early Recovery Benefiting Large Developers and Larger Regional Banks
With the continued strength of the housing sector, banks are again seeing growth in demand for construction and development (C&D) loans and are starting to respond in kind.
The total amount of C&D loans on banks books at the end of the first quarter declined from $203.7 billion at the end of 2012 to $201.6 billion, however, 42% of the nation’s banks reported increases in C&D loans, according to CoStar analysis of FDIC numbers.
There were other signs of improvement as well. Noncurrent real estate constructionRead More
Frank Anton / BUILDER / March 15, 2013
The banks’ reluctance to lend might be the best thing for the housing industry.
Lots of builders blame the banks for the turtle-like pace of this housing recovery. And it’s true enough that tough lending standards have stunted the mortgage market. Last year mortgage originations totaled only $1.3 trillion, a far cry from the 2003 peak of $3.8 trillion. And it’s awfully tough for all but the biggest builders to secure ADC loans.
But let’s consider what might happen if banks flooded the market with money and allowed housing to get a jack rabbit start.
Well, most building