Construction Openings

It’s not just the availability of materials impacting home builders today, it’s also the availability of labor.

The market could use more inventory.  Home builders are trying to catch up.

You’ve likely read the stories about the cost and availability of materials making an impact on home builders’ ability to keep pace with demand.

It turns out they have another factor impacting them as well- labor.

There are more construction job openings than ever before in history.

This is according to a new report from the Bureau of Labor Statistics.

There are 410,000 job openings in the Construction Sector.

A year ago there were 253,000.

If you know of anyone looking for work, there is a good chance a home builder could use the help.

The post Construction Openings appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Construction Jobs

When you see people working to build a new home or new commercial building, you may wonder how much money they earn.

Here is some interesting research from the Bureau of Labor Statistics which ranks the highest-paying construction jobs based on median annual income.

Who knew that elevator and escalator installers would be at the top?

  1. Elevator and Escalator Installer = $88,540
  2. Boilermaker = $65,360
  3. Building Inspector = $62,860 
  4. Electrician = $56,900
  5. Plumber = $56,330
  6. Ironworker = $53,210
  7. Sheetmetal Worker = $51,370
  8. Carpenter = $49,520
  9. Equipment Operator = $49,100

The post Construction Jobs appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Construction Jobs

When you see people working to build a new home or new commercial building, you may wonder how much money they earn.

Here is some interesting research from the Bureau of Labor Statistics which ranks the highest-paying construction jobs based on median annual income.

Who knew that elevator and escalator installers would be at the top?

  1. Elevator and Escalator Installer = $88,540
  2. Boilermaker = $65,360
  3. Building Inspector = $62,860 
  4. Electrician = $56,900
  5. Plumber = $56,330
  6. Ironworker = $53,210
  7. Sheetmetal Worker = $51,370
  8. Carpenter = $49,520
  9. Equipment Operator = $49,100

The post Construction Jobs appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

5.5 Million Short

New home construction is behind by 5.5 million homes over the last 14 years.

Since 2007, new home starts have lagged significantly behind the long-term average.

The Census Bureau started tracking National new home starts in 1958.

Between 1958 and 2007, an average of 1,102,938 new homes were started each year.

Between 2007 and 2020 the average fell to 708,186 which represents a shortfall of 394,752 per year.

That adds up to a total shortfall of 5,526,525.

The under-supply of new homes is of course a significant reason why the market is under-supplied overall.

credit Inman News as the source of this story

The post 5.5 Million Short appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

The Office

 

As you travel around the Front Range you will notice the following under construction:

 

  • New Homes
  • New Apartments
  • New Medical Facilities

 

However, you will not notice new office buildings under construction.

What gives?  I thought we had a booming economy.  Why no new office buildings?

There are a couple of reasons.  First, construction costs have sky rocketed.  In ten years, construction costs have gone from about $200 per square foot to over $300 per square foot.

Rental rates have not increased at the same pace as construction costs so speculative investors can’t make their numbers work.

It’s too expensive to build compared to the rents that can be charged.

One reason why rental rates haven’t increased at high rate is property taxes.  Property taxes on Class A office buildings have basically doubled in the last 10 years in many cases.

So, until rental rates catch up with construction costs, we won’t see many new office buildings under construction.

The post The Office appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Avoiding the Pitfalls of Home Addition Construction

When dissatisfaction with your current home strikes, it can be exciting to launch into a plan for a new addition. A new living room, bedroom, or more can add value to your home while improving your quality of life.

On the other hand, even a modest addition can turn into a major construction project, with architects and contractors to manage, construction workers traipsing through your home, hammers pounding, and sawdust everywhere. And although new additions can be a very good investment, the cost-per-square-foot is typically more than building a new home, and much more than buying a larger existing home.

Define your needs

To determine if an addition makes sense for your particular situation, start by defining exactly what it is you want and need. By focusing on core needs, you won’t get carried away with a wish list that can push the project out of reach financially.

If it’s a matter of needing more space, be specific. For example, instead of just jotting down “more kitchen space,” figure out just how much more space is going to make the difference, e.g., “150 square feet of floor space and six additional feet of counter space.”

If the addition will be for aging parents, consult with their doctors or an age-in-place expert to define exactly what they’ll require for living conditions, both now and over the next five to ten years.

Types of additions

Bump-out addition—“Bumping out” one or more walls to make a first-floor room slightly larger is something most homeowners think about at one time or another. However, when you consider the work required, and the limited amount of space created, it often figures to be one of your most expensive approaches.

First-floor addition—Adding a whole new room (or rooms) to the first floor of your home is one of the most common ways to add a family room, apartment or sunroom. But this approach can also take away yard space.

Dormer addition—For homes with steep rooflines, adding an upper floor dormer may be all that’s needed to transform an awkward space with limited headroom. The cost is affordable and, when done well, a dormer can also improve the curb-appeal of your house.

Second-story addition—For homes without an upper floor, adding a second story can double the size of the house without reducing surrounding yard space.

Garage addition—Building above the garage is ideal for a space that requires more privacy, such as a rentable apartment, a teen’s bedroom, guest bedroom, guest quarters, or a family bonus room.

Permits required

You’ll need a building permit to construct an addition—which will require professional blueprints. Your local building department will not only want to make sure that the addition adheres to the latest building codes, but also ensure it isn’t too tall for the neighborhood or positioned too close to the property line. Some building departments will also want to ask your neighbors for their input before giving you the go-ahead.

Requirements for a legal apartment

While the idea of having a renter that provides an additional stream of revenue may be enticing, the realities of building and renting a legal add-on apartment can be sobering. Among the things you’ll need to consider:

  • Special permitting—Some communities don’t like the idea of “mother-in-law” units and therefore have regulations against it or zone-approval requirements.
  • Separate utilities—In many cities, you can’t charge a tenant for heat, electricity, and water unless utilities are separated from the rest of the house (and separately controlled by the tenant).
  • ADU Requirements—When building an “accessory dwelling unit” (the formal name for a second dwelling located on a property where a primary residence already exists), building codes often contain special requirements regarding emergency exists, windows, ceiling height, off-street parking spaces, the location of main entrances, the number of bedrooms, and more.

In addition, renters have special rights while landlords have added responsibilities. You’ll need to learn those rights and responsibilities and be prepared to adhere to them.

Average costs

The cost to construct an addition depends on a wide variety of factors, such as the quality of materials used, the laborers doing the work, the type of addition and its size, the age of your house and its current condition. For ballpark purposes, however, you can figure on spending about $200 per square foot if your home is located in a more expensive real estate area or about $100 per foot in a lower-priced market.

You might be wondering how much of that money your efforts might return if you were to sell the home a couple years later? The answer to that question depends on the aforementioned details, but the average “recoup” rate for a family room addition is typically more than 80 percent.

The bottom line

While you should certainly research the existing-home marketplace before hiring an architect to map out the plans, building an addition onto your current home can be a great way to expand your living quarters, customize your home, and remain in the same neighborhood.

The post Avoiding the Pitfalls of Home Addition Construction appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.