Could Be Good Times For Established & licensed General Contractors
I'm reminded of the '90s. Business is boomin! Everyone that is able is working. Real Estate has gained back all its losses from the deep dive of '08 and is launching into the stratosphere of supply side economics:
What got my attention is the 'lAND'. However, San Diego, according to some experts, is anywhere from 75-90% built out. So where's the LAND in San Diego?
With the ever decreasing footprint of available land it's now all about rebuilding, room additions and infills for contractors and developers. For RE Sales Professionals, it's pretty much driven by resales, property management, scant F&F's and some new home sales. As for lenders it's the usual refi, 2nd TD, HELOC and reverse mortgage that continues to float their boat.
There are a few small to almost midsized projects going on. But nothing like the growth spurt of the mid '90's through the mid 2000's. Those days may never be seen in San Diego again. Here's a few of the reasons why.
What the Federal government owns is off limits and they own a lot. From national parks to military installations, to federal prisons, monuments, etc the FED chews up a lot of land in San Diego and their not about to let go of any of that anytime soon.
Dare we forget the ever growing, ever expanding, ever needy State government? What with all their State parks, State buildings, that take up a city block, beaches, campgrounds the 67 billion dollar high speed train to nowhere and the impending unfunded pension plans what's left?
Lets not overlook the Counties & Cities and all their, parks, hospitals, buildings along with jurisdictional boundaries, limitations and ridiculous developmental, environmental impact and permit fees either.
Now factor in the Indian reservations and there's a few tribes with a lot of land that only they can develop. Personally, I don't have an issue with Indians capitalizing on their land.
Finally, there's the NIMBYS by the thousands (and I'm probably one of them) who stifle needed growth by resisting development within their communities.
Many a small to medium sized developer and contractor hath left San Diego nearly broken, or in some cases, broke and recovering. It can be a brutal place for development nowadays.
Bottom line? Where does that leave housing in San Diego? Lots of big developers, contractors and even architects are leaving because their overhead necessitates a much larger feeding trough than they can conjure up in San Diego vs other more growth oriented and expanding communities.
Here's some real truth serum. 10,000 baby boomers a day are entering their retirement years nationwide and will be for the next couple of decades. They've raised their families and now have a big empty home that must still be maintained. They love their neighborhood, their yard, their friends and all the local amenities and services they've become accustomed to. Now many are looking at downsizing, however they want to age in place on their own land. But in a more affordable and modest fashion.
Alas, there's a niche market looming in our midst for many licensed, bonded and insured contractors. We need a few good ones to help us build our brand of CREST BACKYARD HOMES aka Accessory Dwelling Units (ADU) throughout San Diego.
CREST BACKYARD HOMES is networking with residential RE Professionals who are dealing in properties that have added, or are in the process of adding an ADU.
Our focus is working with property/homeowners who wish to add a backyard home to their property. Some want to move from their larger home and downsize to a smaller more manageable BACKYARD HOME so they can age in place.
There are literally thousands of homes and properties under the new State Laws that are now eligible to add a Backyard Home to their property for a variety of reasons.
Come jump on our Band Wagon and have some fun doing something you will enjoy. It's a WIN WIN for everyone.
Base Price for a 15x36, 540sf, 1bdm, 1bth
'Santa Fe Ranchita $74,500