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What’s driving activity in the Capital Region right now? How are market conditions here compared to the rest of the state and the country?
The Baton Rouge market has stayed steady and consistent. We aren’t seeing the sharp slowdowns that some other markets across the country are reporting. A big part of that is likely tied to inventory. There aren’t a ton of opportunities available right now, and there also isn’t a major surplus of new developments in the pipeline. That lack of supply supports activity and keeps the market moving at a healthy pace.
Interest rates are down a little. Are buyers and borrowers adjusting their expectations, or are deals still stalling over rate shock? Are there any creative financing strategies gaining traction among borrowers?
Buyers are definitely adjusting their expectations, but there’s still a fair amount of rate shock in the market. We continue to offer buy down incentives, but at this point they’ve almost become more of an expectation than a true incentive. Buy downs alone don’t seem to be enough anymore, and we’ve definitely had to get more creative in finding alternative ways to incentivize buyers and keep deals moving.
Construction costs have been under a lot of pressure in recent months, and longer. Where do things stand now? Are margins improving?
The threat of price increases continues to be a constant topic of conversation and something we fight off daily. It has taken a lot of consistent effort and focus to maintain margins where they are today. I wouldn’t say margins are improving, but we’ve worked hard to keep them stable despite ongoing pressure from labor, materials, insurance, and overall operating costs.
Mixed-use and live/work-play development has been talked about in Baton Rouge for years. Is it gaining momentum, or a passing fad?
The multifamily market has had a lot of momentum over the last few years, but it feels like things are starting to level out now. There’s still interest, but the pace feels slower.
How has Level Homes been able to grow so quickly and still maintain its reputation for quality construction?
If we are talking about quality and standards, the idea of pulling costs out of a house to cheapen them is the furthest thing from what our core values are. I think our production-based operation automatically causes people to compare us side by side with our competitors but the way we build houses shouldn’t be what defines who we are. Our focus is on, “How can we give the customer more for their dollar, and how can our procedures and processes allow us to structurally build a much better house than anyone else out there?”
