"Land costs present the most difficult dilemma," division president Larry Nicholson says.
Like other production builders in the area, Ryland sells homes at two or three price points to speed absorption. This cuts interest and maintenance costs for the land and helps mitigate the cost of slow government approval. Nicholson says approval time has gone from as little as one year to as much as three years even while demand in Orlando's housing boom has cut lot inventory from two years to 11 months.
To reduce approval time further, Ryland buys entitled parcels from smaller builders that can't compete midmarket and move upscale for higher margins.
Using one marketing and advertising campaign to market product at multiple price points adds cost efficiency, Nicholson says.
About two years ago, Ryland bought land for approximately 2,000 homes. Today, it is developing in 11 communities on much of that land and moving beyond Orange and Seminole counties with sites in Lake County and elsewhere.
Advertisement
Related Stories
Land Planning
Helena Habitat for Humanity Aims to Build 1,000 Affordable Homes
A new Habitat for Humanity project in Helena, Mont., aims to deliver 1,000 affordable housing units and outdoor community amenities
Government + Policy
How Eminent Domain May Be Used to Respond to Climate Crises
Eminent domain, which grants the government power to take private property for public use, has displaced thousands of Americans for the sake of infrastructure in the past, but it may be used for a better purpose in a global climate crisis
Q+A
Soil Connect Is Moving Dirt and Building Relationships
Cliff Fetner created Soil Connect so builders and developers could more easily move dirt and other aggregates from jobsite to jobsite, but it has expanded to become something much more