September column for Builder & Developer magazine now online

My column for the September 2015 issue of Builder and Developer magazine is now posted online.

For this issue, entitled "More Builders are Becoming Landlords" I wanted to review and discuss the nascent trend of builders such as Lennar and Toll Brothers building rental housing (including single-family homes) in order to broaden their business scope and provide steadier cash flow.

An excerpt:

According to recent U.S. Census data, in 2014 just under 65 percent of new home starts were for the traditional single-family home, with the balance mostly comprised of multi-family projects with five or more units.   And yet as recently as 2009, single-family starts stood at 80 percent versus just under 18 percent for larger multi-family developments, which means that the share of multi-family housing starts nearly doubled in just five years.

So if the share of new, single-family home starts is not returning to normal as originally planned, how are builders coping in this strange, new world?  For some, such as Lennar and Toll Brothers, by joining it.

To read the entire column, click here.

To read the entire September 2015 issue in digital format, click here.