Why Homebuilders are Buying Hundreds of Lots All Around Metro Phoenix

Article originally posted on Phoenix Business Journal on February 14, 2024

Homebuilders are busy buying lots and building model homes across metro Phoenix in a sign of increasing optimism in the residential real estate sector.

R.L. Brown Housing Reports tracked 1,053 land transactions with 30,617 acres and 14,194 lots purchased in 2023 in Maricopa and Pinal counties. That’s down from 1,442 land transactions over 47,359 acres in 2022 — though the amount of lots purchased was actually up 8.5% from the13,088 lots were purchased in 2022, according to R.L. Brown Housing Reports.

“I expect land to continue this pace in 2024 to keep new home product permitting in the 22,000 range and new home closings at 23,000, as we forecasted in December,” said Jim Daniel, president of R.L. Brown Housing Reports.