article thumbnail

Key Financial & Safety Metrics for Subcontractor Qualification 

Autodesk Construction Cloud

For another, work delays from 2021 are likely to impact the risk of subcontractor default in 2022 and beyond. . The following standard financial ratios can help risk management teams evaluate potential trade partners during the subcontractor qualification process. FINANCIAL RATIOS: DEBT . Debt Ratio .

Safety 94
article thumbnail

Home Price Appreciation Benefits Some Homeowners but Leaves Many More Scrambling

Pro Builder

While some are swimming in equity, others are drowning in debt—and losing their homes as a result. Property tax increases are causing foreclosure rates to rise in states where homeowners are already facing high unemployment rates, income inequality, and large debt-to-income ratios. Wed, 12/15/2021 - 10:07. Financials.

Debt 52
professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Robert Shiller Predicted the Housing Bubble and Bust of 2008. Here’s His Take on the 2022 Market

Pro Builder

Though homebuying risks are mounting as price growth continues its upward trajectory alongside rising mortgage rates, the market is expected to cool slowly in the year ahead. Americans are also less debt-burdened than they were in 2007, when many buyers turned to subprime mortgages to purchase homes.

Housing 52
article thumbnail

Phases of Commercial Real Estate Development

Construction Marketing

The developer may also be responsible for arranging to finance the project, which can consist of a combination of equity and debt. The success of a commercial real estate development project depends on many factors, including the ability to secure financing, navigate the legal process, and manage risks.

article thumbnail

What You Should Know Before Taking a Construction Loan

Construction Marketing

To win the construction loan approval, make at least a 20% down payment, ensure you’ve got a great credit score, low debt to income rate, sufficient earnings to pay off the loan, construction and project budget approval, and general contractor or builder approval. What to consider about construction loans.

article thumbnail

Home Prices Increase 17.2%—Is the Housing Market in a Bubble?

Pro Builder

Debt as a percentage of personal income has dropped to 85.3% The ratio of total required mortgage service payments to total disposable income has plummeted to 3.97 Another way to look at this is through the lens of household finances. Household balance sheets are in pristine condition. from a peak of 117.1% Read More. .

Housing 52
article thumbnail

Gen Z May Surpass Millennials in the Homeownership Race—Here’s Why

Pro Builder

Not only are Gen Zers already saving up or investing large portions of their $360 trillion in disposable income, but they may also become homeowners at a younger age than Millennials, likely passing up 48% of Gen Xers who owned homes at the age of 30. . The next generation has the opposite view. Demographics. Market Data + Trends.

Debt 59