| Major builders are expanding into Southwest Florida by | | | | having difficulty getting back the same share of |
| buying land on bank foreclosure sales. Homebuilders | | | | business they enjoyed before the economic downturn. |
| such as KB Homes, D.R. Horton, Lennar and Pulte are | | | | They said that only the strong will survive in the current |
| investing a total amount of $7.5 billion to purchase | | | | market, adding that the great number of builders was |
| cheap land. | | | | a result of overbuilding and easy financing. |
| Industry experts said that the move of these builders | | | | Experts also said that once in a while, there will be |
| gave them an edge that can last them several years | | | | small builders who will able to make it back on the top |
| over their competitors. Fort Worth, Texas-based | | | | of the market. But the market is expected to be |
| builder D.R. Horton Inc. has announced its expansion | | | | dominated by large builders who have the capital to |
| into the southwest area of Florida. | | | | build new houses. |
| Currently, the builder has seven active home | | | | Many small builders need new sales and financing to |
| communities located in Tampa Bay area. Similarly, | | | | sustain their operations, and in some cases, fend off |
| Bloomfield Hills, Michigan-based Pulte has been | | | | bank foreclosures sales, according to experts. |
| negotiating to buy land in several areas in Sarasota | | | | Since 2006, about 160,000 jobs were lost in the |
| County. | | | | construction industry in Florida. Industry experts said |
| Meanwhile, several regional builders are experiencing | | | | that aside from the economic downturn and housing |
| some market improvements. However, they have | | | | market collapse, small builders are also facing stiff |
| already reduced their workforce and financial | | | | competition from large builders. |
| foundations. The collapse of the housing market | | | | The merger of Centex and Pulte resulted to the |
| forced many regional builders to close their businesses | | | | largest home building company in the country, |
| or stave off banks from foreclosing on their lands | | | | controlling 80 communities in the state alone and |
| which they purchased during the peak of the housing | | | | holding cash capital amounting to $3 billion. |
| market. | | | | Small builders do not have the luxury of merging |
| Industry experts said that because of the collapse of | | | | because of lack of financial strength, resulting to some |
| the housing market, many regional builders today are | | | | of them facing bank foreclosures sales. |