Winter 1977, Vol 2, No 2

Abstract: Developers and lenders have tools available to deal with the problems of land developability and market volatility. These tools and the creation of an appropriate strategy can help them avoid troubles they have been encountering. The authors explain how builder-developers and their financiers can employ analytical techniques to identify gaps in the market where home building may profitably take place, as well as conditions of excessive supply to avoid the trap of overbuilding. These methods include a perpetual inventory system of housing, an urban development information system, and a system of segmenting the demand and evaluating pipeline supply. The approach does not necessarily recommend more analyses, but rather analyses focusing on the real problems. The systemic method helps one see how the project and its risks fit into the company development plan.