AMREP Corporation

Climate Impact & Sustainability Data (2022, 2024)

Successfully navigated soaring demand, material and labor shortages and price increases

Long-term Goals:

Soaring demand, material and labor shortages, price increases for many inputs related to real estate development and homebuilding
Quickly rising mortgage interest rates
Possible recession

Prioritize the order of projects based on where funds and other resources can be best used
Work closely with customers to address challenges and reset expectations
Adjust forecasts as current projects are reevaluated and new opportunities are assessed

Delays in municipal approvals and inspections and utility response times in both the land development business segment and homebuilding business segment, which caused delays in construction and the realization of revenues and increases in cost of revenues.
Significant increase in mortgage interest rates during 2024 and 2023, impacting home affordability and consumer sentiment and tempering demand for new homes and finished residential lots.
Rising cost of housing due to increases in average sales prices in recent years and increases in mortgage interest rates, coupled with general inflation in the U.S. economy and other macroeconomic factors, have placed pressure on overall housing affordability and have caused many potential homebuyers to pause and reconsider their housing choices.

Provided sales incentives on certain homes, reduced the size of lots and homes, opportunistically leased completed homes and slowed the pace of housing starts and land development projects.