The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

How demographics shaped the housing market in 2021

The U.S. housing market entered a period of the best housing demographics ever recorded in history the same year that COVID grabbed hold of us.

@properties CEOs talk company growth and franchising

In this episode of HousingWire Daily, Mike Golden and Thad Wong from @properties discuss the future for the company including its nationwide franchising plans as it expands.

Keep Up With the Latest Third Party Origination News

Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion.

Real Estate

San Francisco fighting over limited construction labor force

Construction constraints driving up home prices

San Francisco’s competitive employment market is causing many construction companies to lose workers and driving a trend towards more expensive housing, according to an article by Alison Vekshin for Bloomberg.

The city is in an office and condominium construction boom to accommodate the technology boom in the area, and these builders are contracting out construction workers by offering them $2, $3 or $4 more per hour than the residential real estate construction pays them, the article states.

From the article:

“Everybody’s fighting for the same labor force,” said Sean Keighran, president of the Residential Builders Association of San Francisco. “There’s so much work going on. I would say this is a new high-water mark for work activity in San Francisco in decades, perhaps ever.”

The jobs report released Friday showed that jobs are up nationwide, however construction jobs are still lagging.

Because of this increase in competition, single-family residential builders have been forced to move into a new market: luxury homes.

From the article:

In San Francisco, costs are particularly high because access to the city is constrained by bridges and congested highways, making it difficult for contractors to come from outside the city, said Gregg Nelson, Trumark’s co-founder. There’s also a shortage of skilled workers who can handle large-scale commercial projects, he said, estimating that direct building expenses have increased 50% to 60% since 2012.

The result is that developers are forced to build luxury homes, Nelson said. His company, which has four San Francisco condo projects, has to project revenue of $1,400 to $1,600 per square foot to get a loan underwritten.

“Because the costs are higher, you can’t deliver product at an affordable price in those markets,” he said.

Technology jobs caused a boom in San Francisco’s market, but that could change as prices rise, and workers can no longer afford to live in one of the most expensive cities in the U.S.

Most Popular Articles

Red-hot US housing market begins to cool

Though the demand for homes remained strong across the United States in August, there are clear signs that the housing market is past its peak.

Sep 13, 2021 By

Latest Articles

Study: Real estate firms thrive on repeat and referral business

The overwhelming majority of real estate firms – 80% – operated from a single office and typically with three full-time real estate licensees in 2020, according to a new survey by the National Association of Realtors®.

Sep 16, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please