Phoenix/ Real Estate & Development
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Published on May 28, 2024
Phoenix Soars as Homebuilding Titans Like Lennar and KB Home Ramp Up Investments Amid Housing DemandSource: KB Home, CC BY-SA 4.0, via Wikimedia Commons

Big names in homebuilding are doubling down on Phoenix, with companies like Lennar Corp and KB Home launching new communities and racking up land in a city with a climbing home price tag. Miami-based Lennar, sliding into second place on the 2024 Builder 100 List by Zonda, boasts 46 active sites in the metro area. Despite hurdles in land acquisition, Lennar's Phoenix division closed on roughly 2,700 properties in 2023, a volume that could single them out as the 35th largest homebuilder nationwide if they stood alone, as reported by the Phoenix Business Journal.

Lennar's local head honcho Alan Jones lamented to the Phoenix Business Journal that "We're not going to be able to grow this year. We don't have the land to be able to do it," indicating they're on the hunt to deliver up to 2,600 homes. Nearby, a $65 billion manufacturing plant courtesy of Taiwan Semiconductor Manufacturing Co. is set to foster a surge in job growth, and Lennar is ready with about 700 lots. KB Home, sitting pretty at No. 6 on the national list, is going full tilt with 18 new Phoenix communities, and the average sticker price of KB digs is hovering around $427,000.

The housing game is fierce in Phoenix, where new homes are fetching a median of $485,000, a notch above the $445,000 for existing ones as per the Phoenix Housing Market Letter. Amidst the rush, Landsea Homes has beefed up its presence by acquiring Garrett Walker Homes, tacking on 18 communities to its Arizona portfolio. "The Garrett Walker Homes brand will continue in Arizona and the combined presence with our current Landsea Homes portfolio will greatly strengthen our reach in this market," said Landsea's CEO John Ho in a spiel shared by Landsea Homes.

Phoenix's robust local economy and employment prospects aren't just luring in Landsea; they're also beckoning giants like Nationwide Insurance and Nike, adding fuel to an already sizzling job market. He added, "Our strategic focus continues to be creating communities in highly desirable markets across the United States, and we are very bullish on Arizona".

Phoenix-Real Estate & Development