Lennar Homes coming to OKC

[Pete]

Lennar Homes is based in Miami, Florida and is the largest homebuilder in the U.S., with projects in 21 states.

They recently filed to plat land just north of the new Costco call center and east of Francis Tuttle, proposing 131 single-family lots and four common areas on 19.4712 acres, yielding a gross residential density of 6.73 dwelling units per acre. It will be called Parkway Square.

https://www.lennar.com/

You can be sure they are looking to do many more developments around Central Oklahoma.

[Bill Robertson]

Wow! It seems like ancient history when I was wiring houses and all the builders were local guys. The biggest of which might have had 5 or 6 houses going at one time.

[AMinEdmond]

The housing market in North OKC/Edmond is on fire right now. Houses in the $200k-$450k are selling like hotcakes. Taber, Ideal etc. can't build fast enough.. I heard a stat last week that there were only 25 new homes listed on the MLS, this time last year there were almost 10x that number.

[Pete]

There are still huge sections of mostly empty land north and west of the Kilpatrick Turnpike.

And it seems so many people want new homes now, to get close to what they see on Instagram or HGTV.

[sooner88]

Lot inventory is the big bottle neck now, as the home builders are putting them up as quickly as they can. The national players have been working on coming in for 12-18 months now, so the local builders have been buying up as much developmental land as possible.

With the housing prices increasing as quickly as they have been, they're celebrating a broken contract as they are able to get homes resold for prices higher than what they locked in 6 months prior.

[rizzo]

Homes on their website have a dr horton look or vibe to them. Is this a quality builder?

[stlokc]

At first blush this does not thrill me. We discussed in a different thread about how the all brick and stone construction that is common in OKC is not common other places; it is one of the few areas in which I think the built environment in OK actually rises above that of other cities. This builder is not from OKC and the houses on their website look unimpressive and that neighborhood plat looks really dense, which tells me they will be small starter houses. I know small starter houses are needed but I just wish we could get more uninterrupted areas of higher-end properties instead of the scattershot approach.

[OKCRealtor]

Yet another sign of the growing market/economy here in OKC when you have a huge national player like this enter the market.

Pete- are they bigger than DR Horton? DR Horton advertises themselves as the nations largest builder by volume since 2002 and I was under the impression that was still the case. They have of course been here for quite some time. I'm familiar with Lennar on a national level and know they're huge but obviously they haven't been in Oklahoma until now.

[tvkokc]

Yet another sign of the growing market/economy here in OKC when you have a huge national player like this enter the market.

Pete- are they bigger than DR Horton? DR Horton advertises themselves as the nations largest builder by volume since 2002 and I was under the impression that was still the case. They have of course been here for quite some time. I'm familiar with Lennar on a national level and know they're huge but obviously they haven't been in Oklahoma until now.

I did some research and it would appear that Lennar is number 2, and that might be why they're coming here is to be able to get more inventory out there.

The preliminary plat is on the tomorrows docket via TJA if anyone is curious.

[PoliSciGuy]

The housing market in North OKC/Edmond is on fire right now. Houses in the $200k-$450k are selling like hotcakes. Taber, Ideal etc. can't build fast enough.. I heard a stat last week that there were only 25 new homes listed on the MLS, this time last year there were almost 10x that number.

As someone who's building in this area now and will sell my existing house in the area in the next few months, this is great to hear. Hopefully it holds, especially once interest rates jump up this year.

[DowntownMan]

These are some small lots! 30 foot wide lots. 3000 sq ft lots

[SEMIweather]

The lots should be fine for anyone wanting a starter home and not caring about yard size. There’s a very similar subdivision directly to the north of Southmoore High School (probably other examples across the Metro, but this is the one that immediately came to mind).

[Midtowner]

These are some small lots! 30 foot wide lots. 3000 sq ft lots

These smaller homes on tiny lots are selling like hotcakes at outrageous prices compared to older homes. We thought when we bought in July of last year that we were getting hosed on the price (but did great on the sale of our former home). It's like the market said "hold my beer."

The market is inevitably headed towards a correction. I'm concerned that buyers in divisions like this are never going to realize dollar one of equity once that correction takes place. And of course, long term, I would expect that the lack in equity will lead to deferred maintenance, foreclosures and blight in these neighborhoods. Hate to be so negative, but I just can't see a 30-foot wide lot home holding its $300K value in a downturn in the housing market.

[Richard at Remax]

The housing market in North OKC/Edmond is on fire right now. Houses in the $200k-$450k are selling like hotcakes. Taber, Ideal etc. can't build fast enough.. I heard a stat last week that there were only 25 new homes listed on the MLS, this time last year there were almost 10x that number.

Currently 158 homes that are either under construction or new builds for sale in the North OKC/Edmond area, depending on your boundaries. An additional 457 are under contract.

65 of those new builds for sale are in the $200-450K range. 331 under contract in that same range.

Currently 2,004 active homes in all of MLS. That's still staggeringly low. 4,219 under contract.

[OKC Guy]

These smaller homes on tiny lots are selling like hotcakes at outrageous prices compared to older homes. We thought when we bought in July of last year that we were getting hosed on the price (but did great on the sale of our former home). It's like the market said "hold my beer."

The market is inevitably headed towards a correction. I'm concerned that buyers in divisions like this are never going to realize dollar one of equity once that correction takes place. And of course, long term, I would expect that the lack in equity will lead to deferred maintenance, foreclosures and blight in these neighborhoods. Hate to be so negative, but I just can't see a 30-foot wide lot home holding its $300K value in a downturn in the housing market.

January new home sales weaker, -4.5% vs. -1.2% est. & +12% in prior month (rev up from +11.9%); median sales price +13.4% y/y to $423,300 … at current sales pace, it would take 6.1 months to exhaust supply of homes, up from 3.6 months a year ago

This is national info and metro areas will vary but I see the start of slowdown. Inflation eats at income needed to buy houses and most are losing that battle even with good pay wage increases inflation is running way higher so its a net loss.

[April in the Plaza]

These are some small lots! 30 foot wide lots. 3000 sq ft lots

Maybe they will be building Brownstones or Row Houses?

[DowntownMan]

Maybe they will be building Brownstones or Row Houses?

That’s what I was thinking! 30 foot wide lot is not very much once you add set backs.

[Roger S]

I'm thinking row houses too... At first thought it was duplexes but there are blocks with odd numbers and that doesn't work for duplexes.

[tvkokc]

I'm thinking row houses too... At first thought it was duplexes but there are blocks with odd numbers and that doesn't work for duplexes.

It's single family as per TJA's application; I don't believe our zoning code would allow Row homes as a single family since they're connected....

[DowntownMan]

It's single family as per TJA's application; I don't believe our zoning code would allow Row homes as a single family since they're connected....

The application only states front set backs. Usually there is a 5 foot side set back but this doesn’t have that. ROW houses don’t technically have to touch.

There is a neighborhood in Dallas being built called soho square where they have 3 story row houses that are individual homes. There is enough space to walk between each house but that is about it. I could see something like these being built on these lots.

https://www.megatelhomes.com/communi...-Square-115122

[OKCRealtor]

January new home sales weaker, -4.5% vs. -1.2% est. & +12% in prior month (rev up from +11.9%); median sales price +13.4% y/y to $423,300 … at current sales pace, it would take 6.1 months to exhaust supply of homes, up from 3.6 months a year ago

This is national info and metro areas will vary but I see the start of slowdown. Inflation eats at income needed to buy houses and most are losing that battle even with good pay wage increases inflation is running way higher so its a net loss.

We actually just looked at OKC metro inventory this week and compared y/y back to 2017. Inventory in OKC is less than it was at this time last year and actually every year we looked back to. I would agree we should be in the beginning stages of a shift with inflation/interest rates on the rise but as long as inventory is so low and demand continues to outstrip supply it's hard to imagine a correction. We are at historic low levels of inventory here still, less that a couple months supply. National correction in some places inevitable, will be interesting to see what happens here since we've done so well economically and continue to grow. Lot's of people still moving in from out of state as well. Buyers should get some relief as rates & prices continue to rise but it hasn't happened yet. Rates are up ~ 1.25-1.5 % off their lows already but it's still the same story. I'm not selling anything (unless it's brand new or off market) still that's not a multiple offer (have been in 5 multiple offers- all different clients looking for different things) just in the last week and it's only February still and as hot as ever.

[Pete]

^

All great information. Thanks for sharing.

[OKCRealtor]

^

All great information. Thanks for sharing.

You bet. I hope people are finding it helpful.

[BB+1]

Wasn't there a proposal before planning commission for apartments here? Did that die on the vine?

[Pete]

Wasn't there a proposal before planning commission for apartments here? Did that die on the vine?

Not sure, but the Lennar plans were filed just in the last two weeks.