According to Capital Economics’ most recent report, land values increased 14% during 2012’s first three quarters and was approximately four times larger than the increase seen in house prices. Housing availability and building materials have become highly limited making way for some bumps in the housing market recovery, but for many home-builders it has created a larger gap between small and large home-builders’ success. Large home-building companies such as Toll Brothers, Meritage Homes, and Lennar Corporation say they have purchased land very actively and are focusing on home-sites for the coming years. Toll Brothers said, “Our financial strength gives us a competitive advantage over the small and mid-sized private builders in our luxury niche whose access to capital and land remains constrained.” More here
