Comments on: Homebuilders hope slow and steady wins the race http://www.richmondbizsense.com/2010/07/28/homebuilders-hope-slow-and-steady-wins-the-race/ Richmond's Homepage For Business News Fri, 10 Feb 2012 02:28:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Irony http://www.richmondbizsense.com/2010/07/28/homebuilders-hope-slow-and-steady-wins-the-race/comment-page-1/#comment-14849 Irony Wed, 28 Jul 2010 19:11:11 +0000 http://www.richmondbizsense.com/?p=20333#comment-14849 @ James Just out of curiosity how is demand? Like say for instance a single family wanting to design and build on a lot or even developers wanting to build whole communities? @ James
Just out of curiosity how is demand? Like say for instance a single family wanting to design and build on a lot or even developers wanting to build whole communities?

]]> By: james http://www.richmondbizsense.com/2010/07/28/homebuilders-hope-slow-and-steady-wins-the-race/comment-page-1/#comment-14847 james Wed, 28 Jul 2010 17:16:57 +0000 http://www.richmondbizsense.com/?p=20333#comment-14847 As someone who represents builders and developers I see home building at about the same pace as last year, which was the slowest in recorded history going back before WW2. But it's down 70 percent from 2006. It is practically impossible for a residential developer to get an acquisition, development and construction (AD&C) loan unless there are some special circumstances involved. Commercial developers are in the same boat. Getting a building loan for a new home is almost that bad. The cost of building new homes in the Richmond region must come down at least another 10 percent. Builders need to be able to build $160,000 single-family detached homes that people earning $50,000 a year can afford, and outside of small pockets in the city of Richmond it is not possible to build that home in this region. While a few local governments are taking small steps to try to bring costs down, no local government is doing what is necessary. They don't realize that the construction industry is in an emergency situation. Remodeling can keep food on the table for a while but it can't keep a home construction business in business long-term. Small builders, who make up 80 percent of the industry nationwide, are going out of business and putting people out of work. Medium-sized builders like Mr. Waskey are watching their companies collapse under them. He's had to put 150 people out of work!! It has to stop!! Cash proffers need to be dropped and smaller lots need to be approved so smaller homes can be built that people can afford, and it needs to happen now. Everything else is window dressing -- a couple of bucks here and there but nothing substantial. Saving a couple of bucks, while appreciated, won't get the job done. Without the two moves I've identified construction will continue to flounder in Richmond, local governments will continue to be short on tax revenue, and quality of life in the region will deteriorate. As someone who represents builders and developers I see home building at about the same pace as last year, which was the slowest in recorded history going back before WW2. But it’s down 70 percent from 2006. It is practically impossible for a residential developer to get an acquisition, development and construction (AD&C) loan unless there are some special circumstances involved. Commercial developers are in the same boat. Getting a building loan for a new home is almost that bad.

The cost of building new homes in the Richmond region must come down at least another 10 percent. Builders need to be able to build $160,000 single-family detached homes that people earning $50,000 a year can afford, and outside of small pockets in the city of Richmond it is not possible to build that home in this region.

While a few local governments are taking small steps to try to bring costs down, no local government is doing what is necessary. They don’t realize that the construction industry is in an emergency situation. Remodeling can keep food on the table for a while but it can’t keep a home construction business in business long-term. Small builders, who make up 80 percent of the industry nationwide, are going out of business and putting people out of work. Medium-sized builders like Mr. Waskey are watching their companies collapse under them. He’s had to put 150 people out of work!! It has to stop!!

Cash proffers need to be dropped and smaller lots need to be approved so smaller homes can be built that people can afford, and it needs to happen now. Everything else is window dressing — a couple of bucks here and there but nothing substantial. Saving a couple of bucks, while appreciated, won’t get the job done. Without the two moves I’ve identified construction will continue to flounder in Richmond, local governments will continue to be short on tax revenue, and quality of life in the region will deteriorate.

]]> By: Andrew http://www.richmondbizsense.com/2010/07/28/homebuilders-hope-slow-and-steady-wins-the-race/comment-page-1/#comment-14844 Andrew Wed, 28 Jul 2010 13:21:10 +0000 http://www.richmondbizsense.com/?p=20333#comment-14844 As a general contractor in the Richmond area the down turn has been bad but not if you were diversified from the start. I like to focus on additions mainly but have always done everything else so I never had to switch gears. As a general contractor in the Richmond area the down turn has been bad but not if you were diversified from the start. I like to focus on additions mainly but have always done everything else so I never had to switch gears.

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