Development remains one of the most transformative sectors in the multifamily landscape, as highlighted by panelists at the recent GlobeSt. Multifamily Fall conference. With opportunities in redevelopment, the rise of mixed-use properties, and the booming build-to-rent market, the biggest challenge for developers is determining where to start.
Labor is a critical factor in California's construction industry, according to Mike Rovner, President of Mike Rovner Construction.
"We're facing a labor shortage, and coupled with soaring housing costs, it's increasingly difficult for workers to find affordable places to live. Some of our employees are commuting from Bakersfield to Los Angeles, which isn't sustainable long-term," Rovner said. "This is driving up costs across the board in California."
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Larry Scott, Senior Vice President of Development at Fairfield Residential, noted that the supply situation in California is unique, particularly in San Diego, which keeps developers optimistic about future opportunities.
Brandon Gibson, co-founder of Flume Internet Inc., emphasized that lower interest rates could motivate more investors to enter the market. However, panelists warned that self-interest could complicate matters, as many are still seeking funding for upcoming projects.
"There's a time to buy and a time to build, and that has always been the case," panelists said. "The key is to anticipate when conditions will be right for development and to have visionary capital ready to invest two or three years down the line."
Here is our previous coverage of the conference.
1031 Exchanges and Sophisticated Buyers Reshape California's Real Estate Landscape
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
