According to Realtor.com’s 2026 Housing Supply Gap Report, the United States is approximately 4.03 million homes short, with the shortage widening for the third consecutive year. Freddie Mac’s ongoing housing research also concludes that America remains structurally undersupplied by millions of homes, and that closing this gap will require years of sustained construction.
As builders increase production, they navigate higher material costs, labor shortages, land constraints, financing challenges, and regulatory hurdles that continue to slow new housing development. The National Association of Home Builders has identified these barriers as key reasons housing supply continues to lag demand.
Since each market has its own unique housing needs, long-term success comes from delivering the types of residential homes buyers are actively seeking.
Novacrest continues identifying underserved opportunities within residential housing and developing projects that align with local demand. Rather than forcing every opportunity into a single product type, the Residential Income Fund focuses on building residential projects that make sense for the communities we’re serving and the long-term fundamentals supporting those markets.
The housing market is made up of thousands of local markets, each driven by its own economic fundamentals. We focus on regions where the data supports population growth, employment expansion, and housing demand that consistently outpaces new supply.
Our criteria identifies markets with sustained inbound migration, driven by employment or lifestyle; job creation across multiple industries, rather than a single employer; a documented gap between housing demand and available inventory; and long-term growth characteristics that outlast short-term market cycles.
Every acquisition is evaluated through disciplined underwriting, and focuses on purchasing opportunities at or below 70% of estimated completed value. Each market is selected only when long-term demographic trends support the investment.
Because we build high-demand homes, in carefully-selected markets, with the discipline that long-term investing requires, we’ve created resilience when markets inevitably shift.
Novacrest co-founders, Kiani and Anwar Kharfan created the Residential Income Fund for investors who want their capital working in real residential assets, and they remain directly involved in every part of the business, from investor communication and operations to acquisitions, development, and asset management.
If you’d like to understand more on the Residential Income Fund and how we evaluate opportunities, you may schedule a conversation with our Investor Concierge today.
