Housing Giants - June 23, 2008 - (Page 30)

if anything is clear in these uncertain times, it’s that the success formula for home builders of the past 15-plus years needs to be adjusted. communities that are compact and walkable, mixed used development, 55-and-older housing, and affordable, high-density housing may all be sound alternatives for builders and investors in the near term, Clinger says. These types of properties, however, must usually be rezoned and re-permitted first. On a recent trip to Austin, Texas, Clinger took note of a dramatic difference in the activity of two nearby developments. One, the site of a traditional suburban development of a large builder had infrastructure in place, but little construction activity. “Just a half-mile closer to the city in a lifestyle project, sales were ahead of construction,” he says. This could very well portend a shift in the residential construction industry. Clinger also noted a successful development under construction that puts 11 units of housing on each acre. Such high-density developments that yield affordable housing might just be the kind of projects that keep home builders alive in the next decade, Clinger says. Smaller homes on in-fill lots are another development that could help relieve a slowdown in large-lot suburban construction. If anything is clear in these uncertain times, it’s that the success formula for home builders of the past 15-plus years needs to be adjusted. With so much change in the air, many builders are going to have to reexamine their outlook on land assets. The goal is to unload the least desirable lots and hold or acquire lots that are most likely to yield sales most quickly. It’s easier said than done, but those who succeed may well thrive when the housing market recovers, while those who fail get their land positions in order may have to close up shop. HG Looking AheAd Mid-rise condos just might be the future money makers for home builders. Look to our Sept. 10 edition for an analysis by Bill Lurz of that possibility. 30 HOUSING GIANTS.6.23.08 www.HOUSINGGIANTS.cOm http://www.housinggiants.com

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Housing Giants - June 23, 2008 Contents Viewpoint News and Moves Sell Workforce The Land Dilemma

Housing Giants - June 23, 2008

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