Odd Lots How Empty Land in the Arizona Desert Gets Turned Into Homes
Mar 2, 2023
Chase Emmerson, Co-CEO of Emmerson Holdings, sheds light on the intricate world of land investment in Arizona. He discusses the rollercoaster of the housing market, from pandemic pauses to current supply challenges. Emmerson explains how developers secure land and navigate water rights, crucial in the desert. The conversation also touches on the political tension surrounding homebuilding and the strategic shifts as builders adapt to changing market demands. Insights into the recent housing boom and innovative approaches to land procurement round out this engaging discussion.
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Emerson Holdings' Business Model
- Emerson Holdings buys land near existing development, obtains permits, and sells to homebuilders.
- They bought a property for $10 million that Centex Homes paid $100 million for in 2006.
Why Land Investors Exist
- Institutional investors often struggle in the land acquisition business due to local knowledge requirements.
- Homebuilders prefer buying approved land to mitigate risks.
Land Conversion Process
- Converting farmland for housing involves rezoning, preliminary platting, and final engineering approvals.
- Each step takes 12-24 months, creating a long lead time.