Could Be Good Times For Established & licensed General Contractors

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:

 

"Supply-side economics is the theory that says increased production drives economic growth. The factors of production are capitallabor,entrepreneurship and LAND."

 

 

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

Why To Choose Us?

John DL Arenden, Broker 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.

 

 

 

 

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Comment balloon 18 commentsJohn DL Arendsen • March 25 2018 11:39PM

Comments

Hi John- interesting concept for anyone looking for a 1 BR/1Bath little abode! 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 6 months ago

I love the concept.... leave it to California to have it first.... John DL Arendsen 

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) 6 months ago

Also adds to the property value Kathy Streib 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 6 months ago

I once thought of Cali as being the head of the pac on inovation and creativity. But this one's been an uphill battle for many jurisdictions to swallow. But we'll continue to eek along one day at a time Barbara Todaro 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 6 months ago

John,

Looks like your blog post is working just fine now.  And I like this concept.  I know that SB allows 800 square feet of guesthouse, last time there was a discussion on this.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) 6 months ago

New State law now allows up to 1200sf. Subercedes local jurisdictions Ron and Alexandra Seigel   That stated Santa Barbara is one of the top jurisdictions currently permitting them in large numbers. 

BTW, I did not link the reverse mortgage in this post. Somehow it was linked after I posted. How would that have happened if someone hadn't hacked my blog? Just sayin....................................

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 6 months ago

Interesting thoughts on the future of California growth, John.  As an aside, I love the look of "Santa Fe Ranchita."  I could live in one of those. . .No problem!

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 6 months ago

CONGRATULATIONS John, on having this blog FEATURED in the Old Farts Club group!    

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 6 months ago

Thanks for your kind words Myrl Jeffcoat You're always so sweet and genuine. And thanks once again for the feature. I really appreciate you helping me spread the word about ADU's.

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 6 months ago

Hi, John.  It appears that your links are working correctly.   I like this concept of backyard homes!

Posted by Fred Griffin, Licensed Florida Real Estate Broker (Fred Griffin Real Estate) 6 months ago

The need for housing continues to grow and grow and grow.  I don't see that changing any time soon.   Much of the new land will be found within existing land... such as the backyard homes you mention.  Regulations need to change and I think they will.

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) 6 months ago

Under the new State Laws that went into affect in 2017 & '18 Cali has no choice. It's just getting all the jurisdictions and municipaities to embrace them which they are starting to do Carol Williams 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 6 months ago

Hi John

The housing issues, for purchase and for rent, are continuing to challenge in availability as well as pricing. Glad to see ADUs becoming more popular and acceptable.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) 6 months ago

It's a happening Jeff Dowler Things are getting crazy busy. Let's do lunch sometime soon.

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 6 months ago

Hi My Old Friend John DL Arendsen you are absolutely right about the opportunity ADUs represents. I wish you all the best luck in picking up the fruit.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) 5 months ago

Rather pick it from the trees while its fresh than pick it up off the ground Bill Roberts 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 5 months ago

Well John DL Arendsen no matter how you get the fruit, it will be sweet.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) 5 months ago

Spot on Bill Roberts 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 5 months ago

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