AI and Home Builders’ Cost of Buildable Land

When it comes to large construction projects, national home builders often acquire sizable tracts of land. However, the costs of these buildable lands have been soaring in recent years, resulting in new homes being sold at higher prices than comparable pre-owned homes. This puts large home builders at a competitive disadvantage, particularly in markets where they are not only up against existing housing options but also other big builders. Using AI technologies, home builders can strategically identify emerging markets where land costs have not yet skyrocketed. This enables them to offer homes at competitive prices compared to pre-owned ones and gives them a better chance of success in these markets. This post will explore how large builders can leverage AI to identify and seize opportunities in these emerging markets. 

Author: Though the supply chain crisis has subsided, the rising cost of land has significantly contributed to the increased expense of constructing new homes. To overcome this problem, national builders with technological expertise should implement a combination of these four complementary techniques – Game theory, Random forest, Logistic regression, and Dynamic programming – to develop efficient machine-learning models that can predict housing shortages in various regions of the nation. By doing so, they can purchase large tracts of land at lower prices than their competitors. With such predictive AI modeling, prominent builders can acquire land economically in the appropriate areas before the buying frenzy commences, potentially stabilizing the cost of new homes, and remaining more competitive with existing homes. Do you agree with my suggestion?

ChatGPT: Yes, I agree with your suggestion. Machine learning models can be extremely useful for predicting housing shortages in various regions of the nation and helping builders acquire land at lower prices than their competitors. Such predictive AI modeling would allow developers to remain competitive while keeping new home construction costs low, which could help stabilize the cost of new homes...

* To fully explore the rest of the chapter, I recommend obtaining a copy of my book on Amazon. Here are the links:

Kindle version: https://www.amazon.com/dp/B0C7N9CW8J

Paperback version: https://www.amazon.com/dp/B0C7J4X64P

Hardcover version: https://www.amazon.com/dp/B0C7J7D6VH

PDF version (non-Amazon): https://payhip.com/b/7nTyK