I was eating Mexican food the other day at a little restaurant on the west side of Olathe and turns out the 50% owner there has been a property developer and builder for many years around the Kansas City area, especially on the southern Kansas side. We naturally struck up a conversation about current market conditions and how I felt that the new home builders in Kansas City were really taking it on the chin because of the overbuilding that took place.
He turned the conversation a direction I had not thought about. With the suffering and closing of so many of our local builders here in Kansas City has the door been opened for national builders to come in?
Pulte was here and pulled out. I thought largely because they offered floor plans, construction methods and ways of doing business not yet accepted here in the KC area. When I lived in Tulsa I was always told Tulsa was the largest metro area without a national builder. (I never verified.) But is it Kansas City now?
I don’t know whether his prediction of national builders coming in to KC strong when the new inventory gets absorbed but I can believe that we are in a classic real estate cycle and that many of the local builders we all knew of will never be back. Some will weather this storm. But how many?