Housing Giants - September 24, 2008 - (Page 21) when large builders rush into the same product lines — including the sand castles of mid-rise condos — the late-to-market effect sets in, and the industry overbuilds until profits disappear. in tHe last issue of Housing giants, we investigated the possibility that highdensity housing forms — including midrise condos — could play a central role in housing recovery, as high energy costs drive home buyers toward locations closer to work. The danger in that line of reasoning is that if too many decide to build mid-rises, the glut of condos that now infests South Florida could spread nationwide. Why do builders follow each other, like lemmings, into the same products and price points? How can you beat the bandwagon to the best new housing products and most profitable niches? They’re critical questions housing’s giants should be asking if they want to hold on to the profits they do have these days. Human nature Pilots tHe Bandwagon There’s really no mystery in big builders’ tendency to gravitate toward the same products and price points. “It’s the history of capitalism,” says Atlanta-based builder management consultant Martin Freedland of The Berke Group. “It happens in every sector of the economy. The apartment builders have struggled with overbuilding for decades, and it’s happening now in office buildings. The Hummer looked like a good idea when everybody was driving SUVs. www.Housinggiants.com 9.24.08.Housing giants 21 http://www.berkegroup.com http://www.housinggiants.com
Table of Contents Feed for the Digital Edition of Housing Giants - September 24, 2008 Housing Giants - September 24, 2008 Contents Viewpoint News & Moves Process Bandwagon Effect Housing Giants - September 24, 2008 Housing Giants - September 24, 2008 - Housing Giants - September 24, 2008 (Page Cover1) Housing Giants - September 24, 2008 - Housing Giants - September 24, 2008 (Page Cover2) Housing Giants - September 24, 2008 - Housing Giants - September 24, 2008 (Page 3) Housing Giants - September 24, 2008 - Housing Giants - September 24, 2008 (Page 4) Housing Giants - September 24, 2008 - Contents (Page 5) Housing Giants - September 24, 2008 - Contents (Page 6) Housing Giants - September 24, 2008 - Viewpoint (Page 7) Housing Giants - September 24, 2008 - Viewpoint (Page 8) Housing Giants - September 24, 2008 - Viewpoint (Page 9) Housing Giants - September 24, 2008 - News & Moves (Page 10) Housing Giants - September 24, 2008 - News & Moves (Page 11) Housing Giants - September 24, 2008 - News & Moves (Page 12) Housing Giants - September 24, 2008 - News & Moves (Page 13) Housing Giants - September 24, 2008 - Process (Page 14) Housing Giants - September 24, 2008 - Process (Page 15) Housing Giants - September 24, 2008 - Process (Page 16) Housing Giants - September 24, 2008 - Process (Page 17) Housing Giants - September 24, 2008 - Process (Page 18) Housing Giants - September 24, 2008 - Process (Page 19) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 20) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 21) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 22) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 23) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 24) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 25) Housing Giants - September 24, 2008 - Bandwagon Effect (Page 26) Housing Giants - September 24, 2008 - Bandwagon Effect (Page Cover4)
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