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Welcome to a special edition of conference room this week we come to you from a construction site in the midwest which in the last.
Numbers on housing starts on the one area of the country where housing starts.
Have increased this is construction site Ryland homes which is had a real great run their stock up a 100%.
Over the course of the past -- that's good news to John Carroll who runs the midwest for Ryland one -- the positive signs you -- seeing in the midwest and out.
Well here in the Chicago division which is one of actually three divisions we have in the midwest.
We are seeing an increase in overall sales -- -- things happening and strengthen purchase sales as well I'm new homes.
And what you've done is restart it is we maybe hear that solace.
Buzzing in the area and the nail guns hammering.
You -- restart -- communities that had been shut down.
That's correct we start restart in three communities -- -- by previous builders we restart world communities that we should now.
A couple years ago.
And we also took a section here and -- war.
What was originally planned for powerball started as an active -- It would take a walk out if we can John and this is it's called -- more it's in the the Chicago suburb of Huntley Illinois and this is one of the areas it was pretty hard -- when you had the recession I mean.
Things hold back your pretty pretty hard.
Yes it did it -- and really throughout Chicago we saw pretty pretty strong hold back when the market.
Was suppressed but.
Huntley has always -- What I've taken the approach is that neighborhoods and communities that were stronger in the good times -- be strong.
As the market continues to return so although you're gonna -- that type of volume and -- the you know reunion for sales -- nations community you did -- negative -- in the and the day we're seeing you know more like three a month.
Which is a good solid number.
In any you can build on -- you can build on pardon upon right you can build on that you can you can make the numbers work and you can be profitable I want to talk you about trends as we go forward here.
One of the things you did which I think is interesting because it's something at the grossing more out nationally if you take a community that -- been designed in a particular way perhaps storing that.
The boom times.
And you've actually morph this into something get better.
Adapts to the marketplace and what's out there right now tell me that that's correct it with -- and Daria active adult series.
And we -- stands for and -- stands for great creative marketing name.
Actually I have actually not true I.
It actually stands for gulf it's actually -- -- -- for gulf and and we we did come up with that.
Because we think active adult wanna go they -- you know they're they're active people around the golf.
And so that is one room and we came -- at the -- CEO we -- -- senior communities -- adult communities.
You kind of you don't want any younger people in there they're very restrictive.
The blueprint on that.
That's true we are very different dynamic here with and are.
We've taken it as a -- having no children allow are very very limited amount children -- and which has town homes and as entry level single family as one single family and so what and facing active adult -- -- take their grandchild to the pool.
That's no problem okay it's not restrictive that we have programming correct results will have seniors when things like that.
But more importantly it's less restrictive and and it's also important for today's changing -- These families -- is you know could be.
A single mom who has a teenager who lives -- her parents -- and if you don't allow for that flexibility within your rules there -- community shutting that fire try to fire out who.
-- you know and with the boomers coming of age.
That's a big that's a big part that market that we want to make sure we can capture Polanski one more thing before we get away as we continue to listen to this construction happen out here it's kind of great to hear.
Solace humming again to hear.
Nail guns firing again.
You know you went through a very difficult period what are you doing different now.
If you try not to make sure you get a bubble in housing.
More conservative what are you doing.
I think that -- We've always been conservatives -- -- position -- and that's why we're doing while.
Particularly here in Chicago I think that you know.
Everything is done on smaller scale and and we are certainly no where we may have built you know four models in the past in the community you know we we we will build one or two.
Depending on the number of home sites that we -- -- -- community I think that you know we are staffed certainly -- we've we've taken advantage of technology.
We it's -- being able you know.
The same number people surprised more -- we are.
You know taking you know our our cost worker program costs and make sure because we know the people -- -- -- the reason I think you're seeing this resurgence in midwest housing.
Is that me you know people -- that must recognize the value and they see it we have -- we are we are priced competitively with three sale in every summer primary Chicago.
Maybe not dollar for dollar but considering that you get.
And your warranty you get all new appliances all you have huge competitor now the reason the resale is obviously -- -- competitor we've yet.
Foreclosures and that's what it is it is it's it's it's it's that's a -- I think that's -- that's something that's been different since.
You know in the boom times of new housing construction there's more competition in resale house.
Well there's one here a couple of takeaways for you there a little bit more conservative development particularly an industry that had so much to do with the boom so much to do with the bust.
But headed back in the right direction particularly here in the midwest the one area of the country where housing starts.
On the rise.
I'm Jeff Flock in this has been conference.
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