Dive Brief:
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CalAtlantic, the nation’s fifth-largest homebuilder, is opening a Utah division this summer, the company announced.
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The builder pointed to the strength of the state’s job market and its growing population among the reasons for its expansion into the region.
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CalAtlantic appointed Dave Prolo, previously vice president of the company’s Southern California Coastal and San Diego divisions, to lead the new segment. Prolo previously helmed divisions in Utah for John Laing Homes and Richmond American Homes in the early 2000s.
Dive Insight:
CalAtlantic’s expansion news follows a string of announcements from the company in late April, including its opening of six communities nationwide in one weekend, new home sites in Charlotte, NC, and expansion in the Twin Cities, among other news.
The company experienced a strong Q1 2017, with new-home orders up 4%, deliveries up 10% and net income up 14%.
CalAtlantic retained its No. 5 position on the 2017 Builder 100 ranking by closings, with 14,229 closings in 2016. Those closings were 13.3% higher than 2015 and were roughly 700 behind the No. 4–ranked builder, NVR. CalAtlantic also remained at No. 4 on the Professional Builder 2017 Housing Giants list, which ranks builders based on revenue, at $6.4 billion in housing revenue in 2016.
Utah was the fastest-growing state by population in 2016, per the U.S. Census Bureau, with a 2% climb to 3.1 million residents from July 2015 to July 2016. The state had three of the top 10 cities on Zillow’s Hottest Markets for 2017 list: Provo, Salt Lake City and Ogden.
Like other active markets, Utah is facing tight inventories, particularly for affordable housing. In Salt Lake County in 2016, single-family home sales rose 1.3% and median sale prices climbed 8.1%; condos and attached housing sales grew 12% while median sale prices increased by 7%. Utah was one of seven states where home prices rose faster than the national rate in March.
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