The model presented in this paper utilizes and extends the real options framework to concurrently estimate optimal phasing and inventory decisions for large-scale residential development projects. Economies of scale in construction, pricing power, carrying costs, signaling effects, demand...

Land developers in select economic environments have been found to build in large increments and hold substantial amounts of inventory despite their ability to mitigate risk by phasing the production of residential lots. Such behavior was observed in numerous metropolitan areas throughout the...