Rapidly rising interest and mortgage rates are pushing real estate developers to reassess their strategy over the next few years, according to one industry exec.
Don Peebles, founder, chairman and CEO of the Peebles Corporation, told CNBC's 'The Exchange' last week that for-sale projects to be delivered in the two to three years are "problematic" and that many developers like Peebles are shifting their near-term strategy to rental properties instead.
"The market is actually kind of in shock because rate movement has been so fast," Peebles told CNBC. He said the market "went from essentially free money" to mortgages rates that are now between 5 and 6 percent or more for most buyers, meaning monthly payments for median household income buyers are up at least 100-150%.
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