Weekly Special | August 1, 2016

The Supply Of Cheap Lots Is Going Away

The supply of cheap lots is finally thinning out and that means our market is going to be changing … big time.

Many of the new construction developments that are flourishing today are doing so on lots that were previously foreclosed upon (often multiple times) and therefore were acquired by the current builders/developers below the real cost of development.

As this inventory of cheap lots erodes, the new home construction market must now deal with rising costs and the exorbitant impact fees that make it so hard to build in Leon County.

Expect to see many of our local builders moving their businesses to surrounding counties in order to be able to bring homes to the market that will be affordable to more than the top 1% of homebuyers.

New construction home prices will be hard to keep below $400,000 for single family detached homes when we start building on the post-housing-bubble lots.

That means we can expect to see more multi-family development and continued low permit numbers for single family detached homes.

The original one-page Weekly Special PDF is still available.