Gadi Kauffmann of Robert Charles Loessee just presented an even more grim scenario. He just told the masterplanned community panel that 2006 prices won’t come back until 2013. So mastaer planned communities should focus on making their existing buyers happy and creating communities. DMB has focused on marketing that helps people avoid loneliness. Direct quote from DMB’s George Casey: people will pay not to be lonely.
All communities are moving toward sustainability. Arizona Public Service has mandated a 50% renewable energy use by 2020. Young, healthy , educated people are willing to pay for sustainability. That is only 15% of homebuyers, however.
When we come out of this recession, builders will buy land through soft rolling options, not as bulk cash purchases.
