Industry News

Land for real estate construction harder to find

Industry conditions favor big home builders, survey says

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Good land is increasingly hard to find, big home builders will grow bigger, and consolidation will continue in the home-building industry, according to a report released this week by McGraw-Hill Construction and Deloitte & Touche LLP's real estate industry group. The report, based on a survey conducted by McGraw-Hill Construction's Industry Analytics and Alliances division, also found that high-end kitchen materials, tile flooring and wood flooring are a fast-growing trend in new-home construction. "In all aspects of the study, land was shown to be a critical commodity. It could create the largest roadblocks (supply and development delays), the most significant cost, and have the most important impact on profitability," McGraw-Hill and Deloitte and Touche officials said in an announcement. Construction materials procurement "is becoming more regional national, not just local, which means that large home builders are reaping strong advantages in procurement," according to the "Staying...