Tampa, FL, April 28th, 2025–Written by Bill Eshenbaugh, ALC, CCIM
As we round out the first quarter of 2025, there’s a noticeable air of uncertainty in the development world. Around the metaphorical campfire, it’s a good time to pause, reflect, and recognize the patterns that continue to emerge in our ever-cyclical real estate landscape.
Political Ripples and Economic Caution
Newly implemented policies following the 2024 election cycle have stirred the economic pot. From stock market fluctuations to rising material costs and renewed tariffs, many investors and homebuyers are hitting the brakes. Supply chain concerns are back in the conversation, and uncertainty around the cost of raw materials is giving developers pause.
Homebuilders are feeling the impact too. One of the nation’s largest public builders recently reported that their margins dipped below 20% in Q4—quite the shift from the record-setting highs we saw in the post-Covid boom. But as I toss another log on the fire, I’m reminded that 15% margins were once the norm—and often considered ambitious.
Could this just be a return to normal?
What Lies Ahead: Cost Pressures and Course Corrections
Looking ahead, it’s likely we’ll see pressure across the board in 2025:
- Developers pushing to reduce costs
- Sellers adjusting land pricing expectations
- Policymakers aiming to ease interest rates
Whether you’re a seasoned investor or a first-time landowner, staying informed and agile is more important than ever.
Let’s Talk Land
If you have questions about how today’s market conditions might impact your land value, I’m here to help.
📧 Email me at Bill@TheDirtDog.com
📞 Or give me a call at (727) 410-9595
