How do I know if my area is ready for new construction

[Mike T.]

I know that this subject has been discussed in the past. I have been reading a lot of old post.

I have been looking for rehab opportunities it Tampa for the past 6 months. As values are increasing I have a hard time finding a deal. My partner is a GC and during the last boom spent his time building for Centex. As well as developing raw land into a subdivision and building custom homes.

We are trying to decide if it is time to jump back in. Any advice on looking at the climate of your local market would be appreciated.

I have had two coworkers sell their house recently in the area where I lived. Both sold for over asking within 24 hours. One sold his house for 170k, he bought it for 120k 15 months. So both of these individuals have purchased new construction. One is waiting 9 months for his house to be completed, the other is waiting 7 months.

My partner wants to find a lot for the first run. Last time he developed it took over ten months for all permitting and getting utilities installed, roads etc.

How should I run market analysis. I have two small areas identified where it is booming again. Both areas have large employers moving into the area. Both areas are basically their own cities located in suburbs of Tampa. It reminds me a lot of North Atlanta 15-20 years ago.

As far as lots available in the area. All of the large subdivisions seem to be builder owned. So you have hundreds of houses that all look the same. But there are some smaller subdivisions that offering one acre lots (I am guessing due to zoning issues).

What should be included in due diligence?

Should I find RE AGENT, would this still be a residential agent?

I can call all of the subdivisions and ask how far out they are scheduled?

Is there a DOY market for new construction that I should look at?

Any advice would be appreciated.