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Error processing SSI fileHome builder has interest in Metro area
Ryan Homes would be fifth national developer since 1999 to come to the competitive region.
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New home buyers can expect more competitive prices as a fifth national builder since 1999 enters Metro Detroit's increasingly competitive home-building industry, real estate experts say.
Ryan Homes, a division of NVR Inc. in Reston, Va., which operates in 11 states and has built close to 200,000 homes since 1948, is looking for land in Metro Detroit for future residential subdivisions, a company spokesman confirmed. The company's Web site lists a handful of job openings in Metro Detroit, including managers of cost control, production, sales and marketing.Dan Malzahn, NVR's vice president of business planning, declined to comment directly on the company's activities in Metro Detroit. He said the company was "scouting out" opportunities in the region but wouldn't divulge plans or locations.
Since 1999, four national builders have entered Metro Detroit's home-building market, which last year recorded its best year ever, based on permit filings. This year, permit activity is down 14.8 percent through July. Builders attribute the slowdown to Metro Detroit's weak economy, job fears and high unemployment.
David Sowerby, portfolio manager for Loomis Sayles Co., an investment advisory firm in Bloomfield Hills, said Ryan Homes is likely investing while the market is down with the hope that they'll benefit from a future turnaround.
"As an investor, do you want to buy stock at its highest price or do you want to buy low with the hope that things will turn around?" Sowerby said. "Michigan needs a catalyst to get things moving again, but Ryan Homes is betting that their patience will be rewarded."
Other national builders that have entered Metro Detroit in recent years include Toll Brothers Inc. in Huntington Valley, Pa.; Centex Homes in Dallas; and Neumann Homes Inc. in Warrenville, Ill.
In turn, Pulte Homes Inc. in Bloomfield Hills, the nation's largest home builder, has brought its Del Webb division to the region. Del Webb specializes in building homes for active adults ages 55 and older.
Irv Yackness, executive vice president of the Building Industry Association of Southeastern Michigan in Farmington Hills, a trade group that represents 2,400 home builders and remodelers, welcomes the arrival of Ryan Homes.
The home builder's foray into the region "indicates we have a strong housing market," Yackness said. "Michigan is an attractive place to do business, and we welcome all home builders."
He said Ryan Homes, like other new builders, would be required to have a license to do business in Michigan, while at least one employee must have a state-issued builder's license. Home builders also need to apply for a building permit in a respective community where they plan to construct residences.
You can reach R.J. King at (313) 222-2504 or rjking@detnews.com.
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