As far as which areas of the market are excelling, they’re all showing about the same strength. It used to be almost unheard of to have a million-dollar home in our Parade of Homes, but now it’s pretty balanced across the board — high-end, mid-range and starter homes are all very popular. The rental side of the market is probably a bit softer.
Biggest Source of Concern for Builders:
One issue that’s front-and-center is very much a state issue — it’s workman’s compensation insurance. Many insurers have pulled out of the market, so it’s a challenge for local builders to get adequate coverage for that. On the other hand, General Liability Insurance — which has been in short supply elsewhere — is available here thanks to the efforts of our state association.
Another big concern is the increasing scarcity of land to build on. Finished lots (in any number) are getting tough to come by. It seems all the big national builders are here now — three or four have arrived just in the last year, including Lennar and others that were rumored to be coming in over the last five years. They’ve finally made it. Before, we never had anyone do over 1,000 homes — but now, both D.R. Horton and KB Home have built that many. And we have some big Planned Unit Development (PUD) projects coming out now. What’s happening is that big-name, national builders are coming to the market by buying up well-known local builders that have significant land holdings. They’re making them offers they can’t refuse.
Market Trends:
Our two big trends going on right now are “lofts and condos” and golf communities. We’re seeing older buildings being rehabbed as lofts downtown, and of course condos are not uncommon due to our beach location. And for golf-related developments, we’re now practically rivaling Hilton Head, SC.
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