Developing Excess: Spec Houses Worth $20 Million

Amid concerns about unemployment, an uneven housing rebound, and difficulty getting financing, some elite developers continue to build ultra-luxury homes on spec—for sale on the open market, not for an owner. Some cost even more than the residences they built during the housing boom. In high-end markets such as the Hamptons, Beverly Hills, Calif., Palm Beach, Fla., and Aspen, Colo., a number of new spec houses have entered the market this year in the $20 million range. A few are asking for far more.

The costliest new spec house for sale is 1220 South Ocean Boulevard, an estate in Palm Beach that recently listed for $84 million.It is the most expensive house that builder Addison Development has built in its 30-year history, and one of the most expensive homes for sale in the entire country.The company also recently completed a house on El Bravo Way that is asking $47.5 million.