Land Prices Doubled
The price of land for new homes in the Sacramento region has more than doubled in two years.
Tuesday, August 3, 2004
That price is around six hundred thousand dollars an acre and is still going up. This is the old law of supply and demand. High demand, plus low supply, equals crazy prices. Builders in Sacramento - one of the nation's hottest new home markets -- are struggling to find more land. They try to pass on the increased cost, build homes closer together, buy property that isn't zoned for housing and cut profit margins. Land prices are highest for dense projects in cities like Folsom. But they could get up to a million dollars an acre some day. That was the price of thirty five acres just sold for homebuilding in Hercules, in Contra Costa County. And that's only fifty eight miles from Sacramento.For the Business Journal, this is Mark Larson