Big Builders Accumulate Land with Abandon

As the housing industry comes out of its recession, the big public companies have begun amassing land again at a frenzied pace. Without question, as land prices have come down, more builders are pursuing land deals, some with a vengeance. In the first quarter of its latest fiscal year, Lennar spent $154 million to acquire 3,300 homesites. During the three months ended March 31, Standard Pacific spent $50.8 million on land, versus only $3.7 million in the same quarter in 2009. A few days ago, the Irvine, Calif.-based StanPac purchased 63 lakefront lots in the Rough Hollow community in West Austin, Texas, where it intends to build 2,200- to 3,200-square-foot homes. “We would have done these deals in 2009, but land opportunities weren’t available,” Scott Stowell, StanPac’s COO, told BUILDER earlier this week. “Now, the curve is shifting towards us; land is breaking loose, finally, and we’re seeing more deals.” The builder expects to spend up to $400 million on land this year.

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