AUSTIN (ABJ) — On the heels of announcing a plan to invest $15 billion to essentially build 10 mini-cities around Central Texas, it might come as a surprise to hear Red Oak Development Group CEO Tom Staub admit he fully understands he didn’t pick a great time to do it.
He listed off the reasons: Many developers are not buying land because of high prices. Builders are being cautious about what projects they are taking on because of rising construction costs. Existing home sales are reaching decades-long lows. Mortgage rates at 8% are making home-buying difficult, and more.
“It seems so contrarian to go out there and do this now,” Staub said. “But doing this now puts lots on the ground in 12-to-18 months. So, really, it’s positioning ourselves to have the bulk of supply in Austin for builders going into 2025 and 2026. So timing couldn’t be worse if you’re thinking right now, but it couldn’t be better two or three years out.”
Read the full story online at the Austin Business Journal.