“Land is like lumber”

“The nascent recovery in new-home sales has U.S. builders rushing to buy up a diminishing supply of well-located, ready-for-construction land.  Demand is becoming so overheated in areas such as coastal California that developers are forced to pay more or shop in less-favorable markets.  Around the California coast, where the technology and health care industries are fueling job gains, plots are selling faster than developers can prepare the dirt. The supply of finished lots – which have permits, streets, and water and power lines, enabling construction – will fall to zero within a year in San Jose, San Diego and Orange County, said the Concord Group, a consulting firm.”  Full Story

“In Texas, land is like lumber, something to build a house for somebody to live in.  In California, the land is what’s valuable.  The house is just how you monetize it.”  Guy Asaro, McMillin Homes

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