D.M. area bucks trend in supply of lots for houses
KENT DARR May 27, 2016 | 3:43 pm
2 min read time
371 wordsAll Latest News, Business Record Insider, Real Estate and DevelopmentA record number of homebuilders have told their national organization that house lots are in low supply. The situation in Greater Des Moines is not quite as dire.
“We’re in a better situation than we have been in for several years,” said Dan Knoup, executive officer of the Home Builders Association of Greater Des Moines.
The National Association of Home Builders said 64 percent of its members are saying that lot supply is very low.
“What I’m hearing from our developers’ council members is that they are just starting to get caught up,” Knoup said. The situation has improved to the point that individuals can finds lots that haven’t already been bought by developers planning multi-house projects.
Joe Pietruszynski, vice president of land development for Hubbell Realty Co., said a report in February from a national real estate research firm indicated that that “from a general macro perspective, it shows the metro maintains an equilibrium of lots, roughly a two-year supply. However, what it doesn’t show is that there are areas where lots are low in supply and where lots are higher in supply.
Here’s a breakdown:
Western Urbandale, Waukee, western area of West Des Moines: 1.6 years’ supply (low inventory).
Central Urbandale, Johnston, Polk City, Ankeny: 1.3 years’ supply (low inventory).
Bondurant: 1.2 years’ supply (low inventory).
Pleasant Hill, Altoona: 3 years’ supply.
Norwalk and Carlisle: 3 years’ supply.
West Des Moines, Clive, Des Moines: 1.8 years’ supply.
Pietruszynski said: “Within these areas, there are pockets of higher and lower need. For instance, the western area of West Des Moines and Waukee maintain a little less than a year’s worth of inventory. Southeast Des Moines and Altoona have slightly higher than three years’ worth of inventory.
“The bottom line is we are in the same place we were in last year — the development of lots in hotter areas out west are not matching demand. The east side is still recovering from the recession, but there is movement starting to occur.”
Knoup said the availability of lots has improved to the point that four developers are pitching developments to be featured in the organization’s 2018 home show.
“We’re kind of contrary to the national situation,” he said.
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