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How Homebuilders Get Creative When Land Is Scarce [Forbes]

PulteGroup, Inc. (PHM) 
Last pultegroup, inc. earnings: 4/23 06:30 am Check Earnings Report
Company Research Source: Forbes
How Homebuilders Get Creative When Land Is Scarce Like the sailor in The Rime of the Ancient Mariner, who moans “water, water everywhere, nor any drop to drink,” homebuilding companies have been fretting for years about the shortage of buildable land in the areas where they see the demand for new homes being concentrated. It’s easy to find land that is an hour or two by car away from any concentration of jobs and services, but most builders want to be closer in than that. Generally, the closer to the urban core you go, the greater the demand for new homes and the higher the prices builders can fetch. The “A” areas for most production homebuilders are the inner suburbs. The current pace of homebuilding in the United States, despite having risen during recent years, is still below the pace of household formations (read: cost of land This is all motivating land developers to get creative. One approach is to convert defunct golf courses into residential buildings and homes. Hundreds of go Show less Read more
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