By Angela Gonzales | Phoenix Business Journal
In an effort to keep up with homebuyer demand, Scottsdale-based Taylor Morrison Home Corp. is gobbling up even more land across the nation — and the Valley.
Sheryl Palmer, president and CEO of the Scottsdale-based homebuilder, told analysts in a third quarter earnings call (on Oct. 28 that) she is ramping up the pace of land investments over the next few quarters to support the company’s growth in 2021 and beyond.
The nation’s fifth-largest homebuilder invested $370 million in land development during the third quarter and $1.1 billion during the first three quarters of 2020. At the end of Q3, it had 68,200 owned or controlled lots, representing 4.8 years supply.
According to research conducted for The Phoenix Business Journal, RL Brown Housing Reports shows Taylor Morrison spent $153.7 million on land in metro Phoenix over the past 22 months.
But even more telling is the 1,114 lots Taylor Morrison has on its books for future development, said Jim Daniel, president of RL Brown Housing Reports.
These lots represent subdivisions where the builder has not yet pulled permits to build. They’re ready to go and just waiting for development, he said.
Buying land is a balancing act, Palmer told analysts during the investor call.
Looking at Phoenix specifically, she said Taylor Morrison has about a two-month backlog from the time it takes to sell a lot, pull a permit and starting construction.
“It’s what we can get in the ground and when can we get those lots to our construction team to begin construction,” she said.
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