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Beazer Homes is one of the most active players in a recent trend in new home construction that has builders developing more of their own lots.
Atlanta-based Beazer currently has close to 1,900 new lots in development in seven different subdivisions in Houston. Close to 1,600 of those are in new neighborhoods, while the remainder are expansions of existing ones.
As of the end of 2002, Beazer had developed a total of 2,000 home lots in Houston. The home building company builds homes on some of those, and develops and sells some to other builders. Beazer was an active developer in 2001 as well, developing a total of 1,500 lots that year using an in-house development staff.
Beazer estimates it closed the sale of 900 new homes in 2002, which would likely place the company among the top 10 home builders in Houston.
Kurt Watzek, president of Beazer's Houston division, says the company has been upping its local lot development pace, but tries to keep its land acquisitions mostly under wraps. Many home builders are vying for the available lots, and there aren't enough to go around, he says. The company also competes to purchase prime land for its own developments.
"We try to lay low because it's tough out there with land," says Watzek. "We don't want to tell anybody until we have it under contract." In addition to land acquisition benefits, Beazer executives say it's typically less expensive to develop lots than to buy them from another developer.
Mike Inselmann, president of residential real estate research firm Metrostudy, says the city's top 10 to 15 home builders are active in lot development, especially the public...