Every market varies, but during the current housing recovery, land and lot positions continue to be challenging and competitive. It’s time to get creative.
Every builder knows that land and lot positions are a double-edged sword. If you have too large of a land-and-lot pipeline, you can crush your results even if you are selling per plan. If you are short on lots, your overhead can eat you alive. Right now the challenge is to replenish your lots in such a way that your upside is good, but your exposure is not too large. Disruptive events can happen and even though we are in a promising time, those moments that give you pause can throw your financials into a tailspin. We need to balance risk and reward.