PodcastNational Housing Market Outlook

No Pain, Not as Much Gain

Dean Wehrli
Shelly Chen

Dean Wehrli

Shelly Chen

July 23, 2021

Baseball and real estate—what do the two have in common? First, there are some “minor league” markets with low barriers to entry where it is easy to build, but there are also “major league” markets where the going is a lot tougher. There is no clock on the housing market. We may be in the seventh inning, but the housing market appears to be batting around and still has some outs to play with.

In this week’s New Home Insights podcast episode, we speak with Mike Forsum, President and COO of Landsea Homes. We talk about the highs and lows of markets, what housing product are the toughest to execute, how they shifted strategies to meet new market needs, and what the future might hold. Additionally, Landsea went public recently, and Mike gives us an inside look at the perils and promise of that decision. Keep reading below for some of his key takeaways.

Featured guest

Mike Forsum, President and COO, Landsea Homes

High Barrier to Entry Markets

  • Increased profits are a motivator to work in more difficult markets, such as the San Francisco Bay Area or New York City.
 
  • Landsea is motivated to work in these markets so that housing solutions can be provided in areas it would not otherwise be available in.
 
  • There is typically less competition in markets with a high barrier to entry.

Current Market Activity

  • Landsea has seen a shift in buyer preference towards more suburban product within their communities. This is driven by a need for increased space and safety and fueled by remote working opportunities.
 
  • Double-digit appreciation seen in many markets today is unsustainable in the long term. Markets will inevitably cool off.

SPACs

  • Landsea recently went public using a Special Purpose Acquisition Company (SPAC).
 
  • A SPAC is a faster alternative to a traditional IPO.
 
  • Listen to this podcast for a rundown of Landsea’s SPAC and “de-SPACing” process.

Crystal Ball

  • Mike teased that Landsea is not done yet with mergers & acquisitions. Stay tuned for more news.

  • Increased work-from-home (WFH) activity is here to stay. Landsea’s LiveFlex® rooms provide creative solutions for home offices and other needs.

Want to Subscribe to the New Home Insights Podcast?

The New Home Insights Podcast is available on all major podcast platforms. Click any of the platforms below to subscribe.

Building Market Intelligence™

Every week, we deliver analysis to over 40,000 subscribers with our Building Market Intelligence™ newsletter. Subscribe to our weekly BMI newsletters to stay current on pressing topics in the housing industry.

About The Author

Dean Wehrli
Dean Wehrli
Principal
Dean helps housing sector clients figure out not just what might work and what might not, but why.
Shelly Chen
Shelly Chen
Research Analyst II, For-Sale
Shelly is responsible for working on various research projects as it relates to residential for-sale, including supporting our Burns Home Builder Analysis and Forecast report.

Contact Us

If you have any questions about our services or if you would like to speak to one of our experts about we can help your business, please contact Client Relations at clientservices@jbrec.com.

Products and Services Mentioned

green check icon

Geographic Overview of the Public Home Builders

A package designed for those who compare the publicly-traded builders to each other, including securities investors and the builders. Each month we rank each of the publicly traded home builders based on the recent, past, current, and forecasted future performance of their geographic footprint.
green check icon

Research Membership

Our research services enable our clients to gauge housing market conditions and better align their business and strategic investments in the housing industry. We provide a thoughtful and unique holistic approach of both quantitative and qualitative analysis to help clients make informed housing investment decisions.
green check icon

Real Estate Consulting

Our experienced team of consultants helps clients make sound housing investment decisions. We thrive on their success and work with many clients over multiple years and numerous projects.

Latest Insights

NHTI Industry Pulse: $40K for a Gym Membership?
Dear Consultant: Can people still afford homes with high rates and increased inflation, or are they more likely to rent? 
Hillwood Communities and the Art and Science of Placemaking