Some Builders Are Now Leasing Inventory

Trey, they are leasing some very nice apartments here in the Phoenix area until the economy picks up. Yup, signs of the times.

We have not seen the samething here in CA.  It is a way to keep from going broke I'm all for it.

It makes a lot of sense for those who have tons of unsold inventory.

Some here in Abilene Tx also. They don't like doing it.

Banks are forcing this for many builders and the SMART ones are using professional leaing agents and property managers to maintain their investment.

Might this signify the "bottoming out" of your market? Most builders will do almost anything before they'll do this--including going belly up.

Good information and good idea, Many of the new homes south of Houston were vacant for a while because builders having finacial problems. This would be a good niche for someone.

The builders have to stop the bleeding, especially those that have multiple spec homes built.  I fully agree that something has to be done before they go belly up and more people are hurt, as the builder can't come back and repair discrepancies if they are no longer in existence.

I wish the builders in Western Prince William County VA were leasing.  I have had two clients request that until they can take care of this or that minor credit issue. 

It would be best in my opinion to keep those properties leased and have income coming in then to sit vacant.

A little money is better than no money :)

Trey, This is a great alternative to standing inventory and a home is meant to be used not to sit empty. Good for your builder to know when to adapt to changing conditions.

Trey, we saw this in our market also. Commercial is hard hit now and those smaller builders are gone. Only a few that reshaped their business to smaller homes with less amenities are still in business. It's a hard go!