Land Shortage Impeding New Home Supply
In a May survey by the National Association of Homebuilders, 60% of respondents stated that the overall supply of developed lots was low to very low, the highest percentage since the NAHB began asking the question in 1997. The shortage is especially acute for Class A lots located in core markets. John Burns with John Burns Real Estates Consulting contends that, with the low supply of lots and the expensive price of choice parcels, builders have been forced to build larger, more expensive homes which explains the shortage of entry-level supply. With current land prices and entry-level price points, catering to this segment of the market remains economically unfeasible.
About author
You might also like
Big Plans for Tustin Air Base
Over the past several years, coming out of the housing downturn, Tustin Air Base has seen significant development activity. However, with more than 400 acres of land still undeveloped and
How Big Builders Leverage School Quality into Profits
In the following article in Big Builder, a useful summary of analysis undertaken by Raymond James is set forth. Public builder land positions are graded by tiers (based on quality
Five Point Communities Files to Go Public
Five Point Communities, a master plan developer whose projects include Great Park in Irvine and Newhall Ranch in Santa Clarita, filed to go public. The Lennar-affiliated entity will continue to
