Permits and land purchases point toward an increase of supply over the next two years, says John Burns Real Estate Consulting. For-sale and for-rent builders have been scooping up land since June 2020, according to JBREC, and publicly traded home builders have increased their land holdings by 23% year over year, reaching the highest rate of lots controlled in more than three years. Compared to 12 months prior, builders paid for 30% more single-family permits in the last 12 months. JBREC says business for private builders has boomed as well.
Although sales have slowed a bit recently, we just closed our quarterly Residential Land Broker and Developer Survey and confirmed that the land market remains white hot.
Additionally, most of the recent land buys will consist of communities that are larger in size as disclosed by Lennar (LEN), Meritage Homes (MTH), LGI Homes (LGIH), Toll Brothers (TOL), and Green Brick Partners (GRBK), and observed by our consulting team.
The growth in more affordable markets has also boomed. Check out our recent article on The Rise of the Sister Cities as an Affordability Solution to understand a few major markets to which buyers are relocating.
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