If You Build It…
The shortage of housing inventory for sale is persuading some agents and brokers to get into real estate development. By Daniel Bortz In a normal year, Grant Johnson, a real estate agent at RE/MAX Results in Minneapolis–St. Paul, Minn., divides his time equally between selling existing homes and developing land for new- home construction. But the pandemic has flipped Johnson’s business on its head. “Listings have been very difficult to come by,” said Johnson. As a result, he decided to scale up his land development work. “Typically, the builder that I work with and I put together 20 to 30 lots a year,” he said. “This year we’re going to be developing 70 lots.” In addition to procuring the land, Johnson will represent the builder as a listing agent. “Creating our own inventory has helped us survive the pandemic,” he said.
20 | Salt Lake Realtor ® | August 2021
Diversifying business streams amid a period of record-low inventory has been a productive move for Johnson and many real estate agents and brokers this year. National Association of Realtors® Chief Economist Lawrence Yun said, “2021 is likely to have the most acute shortage of homes for sale in history.” The numbers make the urgency clear. Unsold inventory remains scant, hovering at a twomonth supply during the first half of the year. In April, days-on-market was the shortest ever recorded at 17 days, down from 29 in March 2020. The typical listing received more than five offers, April’s Realtors® Confidence Index survey found.
