In some parts of the country, particularly in southern or western states, the production model of construction accounts for most new homes built. In other areas, such as the Northeast for example, custom homes comprise a much larger share of new homes.
Depending on location there is an increase in job opportunities in certain areas. Check zillow for comps before you decide to build.
No, Spec homes are not going to take over the market in Texas.
This is why. Most builders have had a hard time over the last 8 years. Most have lost their credit lines and their credit scores.
I personally know a lot of builders. Not one of them is doing specs with a bank. Except the very large national builders.
They are getting the loans in the customers name, in a 1 or 2 time closing or interim to perm loan.
I’m only speaking about small to medium size builders, who I know.
Getting financing is still the hardest part of construction today.
Steven D. Bennett
President
ATH Properties, L.L.C.