How large publicly traded builders are turning the American home into a corporate product.
Many regions of the U.S. are nearing buildout. The economics of supply and demand are likely to force housing prices to rise further. Big builders are buying up land in the hope that they can cash in on a future price hike they believe is coming that will reflect the housing costs that you find in Europe. Here in the US housing is roughly 3.5 times annual income in Great Britain it is roughly 7 times.
"A number of companies [have] over the past few years, transformed the American home into a corporate product... At the moment, one in four new homes in the United States is built by a large publicly traded home builder, but this ratio will probably change significantly...
[Builders] see a future that depends not on the short-term fate of the Florida and California condominium markets but on the long-term supply of land...They ponder where it will lead them to build in 5 or 10 years.
For the past few years...some builders turned to infill housing, looking to old industrial spaces or unused urban lots to satisfy demand. For the most part, though, they have plotted new communities farther and farther outside of cities...
Of course, there's more to the economics of the housing market than the supply of land. Demand can be influenced by everything from higher interest rates...to a region's rate of job creation...None of these contingencies shake the faith of the big, publicly held builders. Indeed, many are adamant that the tightening supply of land in many metro areas, as well as long-term demographic trends, augur an American future that works to their advantage...
One idea that shapes the outlook of real-estate economists is the notion that cities, in a rough conceptual sense, are replacements for one another. A city is founded, and residents and industries settle there; over time, that city and its metro area might reach a population of a million residents. As demand to live there increases and the supply of good land diminishes, housing gets more expensive. But lo, another city arises nearby, where land is cheaper and jobs are plentiful. Residents can now leave the first big city, if they choose, and move to the second, smaller city...As pressure on prices and land builds, a new city can act as a pressure release.
It's possible that this model has broken down over the past few years. A small cadre of economists, in fact, has begun to ask whether the irrepressible inflation of home values in many coastal metro areas actually reflects a deeper logic based on the straitened land supply in these cities...
You can see how it adds up in the end: the stealthy land acquisition, the aggressive legal positioning, the meandering street designs, the furiously gabled architecture, the fungible options and home facades, the demographic targets - an entire vertically integrated, highly methodological luxury system."
Thanks to Peter Vaughan
FULL STORY: Chasing Ground
Pennsylvania Mall Conversion Bill Passes House
If passed, the bill would promote the adaptive reuse of defunct commercial buildings.
World's Largest Wildlife Overpass In the Works in Los Angeles County
Caltrans will soon close half of the 101 Freeway in order to continue construction of the Wallis Annenberg Wildlife Crossing near Agoura Hills in Los Angeles County.
U.S. Supreme Court: California's Impact Fees May Violate Takings Clause
A California property owner took El Dorado County to state court after paying a traffic impact fee he felt was exorbitant. He lost in trial court, appellate court, and the California Supreme Court denied review. Then the U.S. Supreme Court acted.
New Forecasting Tool Aims to Reduce Heat-Related Deaths
Two federal agencies launched a new, easy-to-use, color-coded heat warning system that combines meteorological and medical risk factors.
AI Traffic Management Comes to Dallas-Fort Worth
Several Texas cities are using an AI-powered platform called NoTraffic to help manage traffic signals to increase safety and improve traffic flow.
Podcast: Addressing the Root Causes of Transit Violence
Deploying transit police is a short-term fix. How can transit agencies build sustainable safety efforts?
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
Tufts University, Department of Urban and Environmental Policy & Planning
City of Universal City TX
ULI Northwest Arkansas
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.