The for-sale housing market was one of the slowest real estate asset classes to recover from the Great Recession. As of now, home values have greatly appreciated and surpassed their prerecession peak; however, construction and sales activity still remain well below prerecessionary levels. This limit in supply is in stark contrast to increasing household formations, shifting demographics, and positive consumer sentiment, which have caused demand for new homes to consistently climb over the past several years. While homebuilders have a true desire to develop homes for this demand base, they are constrained by the availability of lots provided by land developers. This limited supply and growing demand creates a need for additional capital to fund lot development and meet the needs of potential buyers.

Stable and low inventory suggests the market can absorb new levels of single-family development

While construction activity has steadily increased since the