Tuesday, September 3, 2013

Builder Magazine Article Confirms Building Lot Shortage

As if being a modular home builder wasn't bad enough with all the regulations, codes, fees, inspections, green and energy saving restrictions, lender's putting the squeeze on your buyers, now there is another problem looming on the immediate horizon.


As I been saying for a couple of years now, whoever controls the buildable land will control growth. Smaller builders will be at the mercy of new buyers already having their own land or Realtors that can smell blood when there is a shortage of single family building lots available. Maybe, and this is quite a reach, a developer will open his community to any builder. Unless you are a builder in an area like the one hit by Sandy last year, it will be tough to ever hit the magic 15 homes built a year. More likely, the small independent builder will be in the 6 and under homes per year.

Builder Magazine has an interesting article about this problem:
"Lots approved for home building remain in short supply as the housing market recovers but the supply systems struggles to restart. The shortage persists as a residual of the extreme housing cycle we endured."

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