NEWPORT BEACH, CA—Sourcing land and labor remains one of the key struggles for many homebuilders in Orange County, which causes delays, Baldwin & Sons' VP of sales and marketing Melissa Hazlett tells GlobeSt.com. As the locally based family-owned builder and developer celebrates its 60^th anniversary, we sat down with Hazlett for a chat about the top housing trends and challenges Orange County homebuilders face.

GlobeSt.com: As we kick off 2018, what are the top housing trends and challenges specific to Orange County that you are witnessing as a builder and developer in the region?

Hazlett: Based on feedback we are getting from the BIA and other industry sources, we believe one of the key struggles for many builders in the region is the sourcing of land. Additionally, there are concerns about the continued shortage of construction labor in the county. The issue creates challenges for builders by causing delays. As a workaround, some general contractors have their crews working into the evening hours and are thus forced to pay overtime. And while subcontractors are willing to increase their payrolls, there is still a shortage in trained workers. This issue is compounded by labor shortages in related fields such as utilities, since these workers also touch the job site. Unfortunately, we believe these labor issues will continue in 2018.

GlobeSt.com: Do you believe that buyer demand in Orange County will remain strong this year or do you expect a flattening out? Why?

Hazlett: New-home sales in Orange County have soared in recent years as the economy has continued to strengthen. The county also remains a highly sought region to live, which fuels demand. We believe sales this year will continue to grow for these reasons. Our company builds high-end homes that continue to be attractive to buyers in the region, especially those coming from Irvine, and we think this demand will continue this year. Overall, however, there still isn't enough new inventory in Orange County to match the demand here.

GlobeSt.com: As a builder of luxury homes, have you found any major shifts in the demands of your buyers?

Hazlett: Our California rooms, which are an incredibly appealing indoor/outdoor living space, are still the number-one option our buyers at the Oaks at Portola Hills are requesting. This makes sense considering the enviable climate here in Southern California and a desire to celebrate and enjoy it as much as possible. Another big trend we have been seeing in buyer demands is the desire to open up the floorplan. Gone are the days when people opted for a closed-off dining room. They found they were just walking by it most of the time and not utilizing it. By creating much more open floorplans, the space is actually used. Buyers want to gather and connect in one larger space instead of being divided by separate rooms.

GlobeSt.com: With California's reputation as an environmental leader, how has the state's code mandates either hindered or helped your success as a builder?

Hazlett: California's Title 24 creates mandates for all builders to increase their responsibility toward sustainability in new-home construction. Baldwin & Sons honors those mandates, which are obviously protective of the environment and the consumer in that they work toward the creation of healthier homes. One consequence of Title 24, however, is that it has become much harder for builders to differentiate themselves with green-home features, which poses some marketing challenges. Another thing we have noticed is that solar, which gets a lot of attention as an energy solution within the building industry, is still not being adopted by buyers at the rate you might expect. We have found that buyers still struggle with justifying the cost benefit.

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