Austin's Surge of New Housing Construction Drove Down Rents

Re:Austin's Surge of New Housing Construction Drove Down Rents by throwaway2037 on Thursday March 19, 2026 @02:16AM (#47435599)

    > already-near-zero margin on real estate development

I did a little bit of research. I looks like 15-20% is a normal target margin for the United States. Is this really "already-near-zero"? I disagree.

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Re:Austin's Surge of New Housing Construction Drove Down Rents by estearum on Thursday March 19, 2026 @09:27AM (#47439045)

8.7% net profit during a period of explosive appreciation across the nation.

Normal net profit is about 7%.

S&P 500 has been returning more than twice that annually over the past 10 years.

That is how real estate financing decisions get made.

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