Caution, construction obstacles ahead for South Florida’s home builders

In Lennar’s backyard, the pace of single-family-home development isn’t all it hoped and dreamed — but the nation’s second-biggest builder still sees expansion potential
By Mike Seemuth | March 27, 2017 09:45AM

Exterior shot of a model home in Kolter’s Alton development in Palm Beach Gardens

From the March issue: Home builders in the southeastern corridor of the Sunshine State are facing myriad challenges in 2017. Limited land availability in the tri-county area, historically stringent home-loan underwriting rules for potential buyers, and rising land and labor costs, which are pushing more builders into high-end home construction for the wealthy, are leaving a less affluent but nonetheless large portion of the home market with few options.

Miami-based Lennar, the nation’s second-largest home builder and the market leader in South Florida, faced business conditions that were “suboptimal” last year and may persist this year, CEO Stuart Miller said on a December conference call with stock analysts. Miller said he expects similar slow-growth conditions in 2017, with “some potential upside from the new administration in Washington.” [more]