The New Home Builder Strategy: Build To Order

The new strategy for subdivision developers is build homes only after they have secured buyers.

1 minute read

June 13, 2004, 1:00 PM PDT

By Chris Steins @planetizen


"Home builders are wary because they remember what happened 15 years ago, when they badly misjudged the end of the region's last housing boom. They didn't see it coming, and when California's economy tanked in the late 1980s and early 1990s, builders were stuck with tens of thousands of uncompleted houses and empty lots, sending the industry into a financial tailspin... Having learned a painful lesson, builders today get out their hammers and nails only after they have secured buyers. That caution is one reason the supply of housing in Southern California remains short of demand. And that, in turn, is a key reason prices have soared into the stratosphere."

Thanks to Chris Steins

Sunday, June 13, 2004 in The Los Angeles Times

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