According to reports, nearly half a million of construction starts last year were for apartments or multifamily dwellings rather than SFHs, although supply chain issues were reportedly causing delays in their completion.
Toorak Capital Partners, which specializes in bridge lending, recently listed the reasons why inventory levels are still inordinately low, including a belief that banks are not providing loans efficiently.
The firm says it has stepped in to fill the breach, providing capital in this space by relying “on multiple sources” to fund loans, through conservative credit standards, close review of construction deals, and what it says is a “deep understanding of local markets”.
The New Jersey-based company, which recently hit the $10 billion milestone in whole loan funding for housing rehab and construction, has so far enabled the construction, renovation or purchase of more than 50,000 rental and owner-occupied units, having funded 26,000 small-balance, business-purpose loans backed by residential, multifamily, and mixed-use properties across the US and overseas, in the UK.
Given the current downturn in the housing market, Toorak appears buoyant but insists the US “continues to suffer a severe housing shortage”, despite demand and prices starting to drop due to high interest rates.