Housing Price Surge Isn't Sustainable, Waypoint CEO Says

Scott Lawler, CEO of Waypoint, discusses the impact of rising mortgage rates on the housing market, particularly in the Southern U.S. He explains how these rates affect home buying and rental demand, noting the unsustainable nature of recent home price appreciation. Lawler highlights challenges in the construction market, including cost increases and supply chain issues, and discusses hedging strategies against rising costs and interest rates. He also addresses labor market difficulties in finding skilled workers, emphasizing the cyclical nature of these challenges.

What is one impact of rising mortgage rates on the housing market?

• Higher borrowing costs

• Decreased rental demand

• Lower interest rates

• Increased home buying

How does the recent home price appreciation differ from 15 years ago?

• It is driven by foreign investments

• It is driven by financing

• It is driven by supply and demand

• It is driven by government policies

What is a major challenge currently faced by the construction industry?

• Decreasing labor costs

• Stable supply chains

• Abundant building materials

• Rising construction costs

What is one reason for the unsustainable rise in construction costs?

• Supply chain disruptions

• Increased government subsidies

• Stable material prices

• Decreased demand for housing

What is a common strategy for developers to manage rising interest rates?

• Increasing project timelines

• Hedging interest rate risk

• Avoiding construction loans

• Reducing project sizes

What is a current staffing challenge in the construction industry?

• Excessive job applications

• Difficulty in finding skilled workers

• Decreasing wages

• Abundance of skilled workers

What is the long-term outlook for the challenges faced by the construction industry?

• They are worsening

• They are government-induced

• They are cyclical

• They are permanent