HOUSTON – Lawrence Dean, Metrostudy’s senior advisor for the Houston market, says nervousness about the energy industry and the Houston economy, is making it more difficult to finance lot development.
“We have been heading toward a lot shortage for a couple of years,” Dean says. “The capital market has lost its appetite for investing in land development in Houston since the turbulence in the oil market began. Both private capital and community banks have reduced their participation. The publicly traded home builders that have developed quite a few of the lots have also slowed down. Local division presidents who fear they are about to run out of land have to convince the corporate asset allocation people to invest money in property in Houston.”
For the in-depth Q&A with Dean, click here to go to the story on the Realty News Report website.