The "Affordable Housing" Discussion in GR

[GRDadof3]

 

 

9 hours ago, KCLBADave said:

After June 12th, I will be able to post and comment a lot more on this site on issues related to zoning, planning, housing, and development.

To get the ball rolling, I encourage you Grand Rapidian UP'rs to read this great article about a group in Seattle looking to flip the script on their housing woes:

A Must Read Housing Article - Politico.com

To whet your appetite for these discussions here are a couple of money quotes from the article:

"But that tech-fueled demand has tended to overshadow the other driver: insufficient supply. Since the end of the financial crisis, Lubarsky says, Seattle has added roughly 100,000 jobs, but barely 32,000 new homes and apartment units. “We’ve underbuilt every year since 2010,” he adds. And a big part of that deficit, Lubarsky says, is due to neighborhoods like Wallingford, where zoning laws make it almost impossible to build anything other than a single-family house."

"Predictably, the campaign has provoked a fierce backlash from homeowners, many of them Baby Boomers who arrived in the 60s and 70s. They’ve sued to block the proposed “up-zones” to their neighborhoods, which, they warn, will kill the very “character” that makes Seattle’s housing so charming to newcomers in the first place. But to Lubarsky, that cherished neighborhood character was always false advertising, given how few people can actually afford it. “My generation is never going to have that,” he says, gesturing to a tricked-out Craftsman with a tidy yard and paved driveway. “There are too many of us to live like that.”

"When homeowners say they’re fighting to protect neighborhood character, Lubarsky says, “it really feels to me like they just don’t want young people in their neighborhood.”

"Known variously as urbanism, practivism and YIMBYism (Yes In My Backyard), the movement argues that the urban housing crisis has grown so severe that traditional approaches to affordability, such as rent control or state-subsidized housing, are wholly inadequate. "

Interestingly the stats are even (just as) dire here as in Seattle. Since 2011, when Grand Rapids regained the lost jobs from the recession, it has netted about 78,000 - 80,000 new jobs  since then. In the same time period, only about 1000 new homes and 1000 new apartment units on average per year have been added (and those apartment units added are mostly recently). 

Even optimistically speaking, that's only 14,000 new housing units in those 7 years for 80,000 new payroll jobs (not to mention non payroll jobs/1099's).  Not to say that every new jobs needs a new housing unit, but nothing drives housing like job growth does (and divorces, babies, marriages, etc.. probably in that order  )

*Seattle recovered from the recession in 2014 and has added/netted about 220,000 new jobs since then actually. 

Seattle:

https://data.bls.gov/timeseries/SMU53426600000000001?amp%3bdata_tool=XGtable&output_view=data&include_graphs=true

Grand Rapids:

https://data.bls.gov/timeseries/SMU26243400000000001?amp%3bdata_tool=XGtable&output_view=data&include_graphs=true

[arcturus]

Client of mine just sold a home in Seattle inherited after her mother passed.  16 bids with the winning one stipulating they would go $25,000 over the next highest bid, waived appraisal, and provided a $100,000 non refundable earnest deposit.  Sold for $980,000 all cash ... purchased in 1977 for $72,000.  Chinese buyers.  Glad to see cash goes both ways across the Pacific lol.

If GR ever comes close to this level of craziness my money is on the Canadians as the probable cause.  

[Guest]

It's crazy how many out of state license plates I see around town.  New housing really seems to be picking up as well,  Even driving along M6 you can see a ton of new developments.  It will be interesting to see how many people Metro GR has added in the 2020 census.  I have friends moving from the east side for jobs as well.

[GRDadof3]

12 hours ago, Floyd_Z said:

It's crazy how many out of state license plates I see around town.  New housing really seems to be picking up as well,  Even driving along M6 you can see a ton of new developments.  It will be interesting to see how many people Metro GR has added in the 2020 census.  I have friends moving from the east side for jobs as well.

There's a pretty big development in that area along M-6 going through approvals now that will link Breton Road down from 52nd Street to 60th. I know they talked about doing that 20 years ago. Allen Edwin is at least one builder that will be building homes there. 

[organsnyder]

One of our own, continuing to make a difference: https://www.mlive.com/news/grand-rapids/index.ssf/2018/06/kent_county_to_construct_workf.html

[ModSquad]

3 hours ago, organsnyder said:

One of our own, continuing to make a difference: https://www.mlive.com/news/grand-rapids/index.ssf/2018/06/kent_county_to_construct_workf.html

Thanks, when we have our full line up completed, I will upload some renderings.  In the mean time, here is a preview.

[arcturus]

1 hour ago, KCLBADave said:

Thanks, when we have our full line up completed, I will upload some renderings.  In the mean time, here is a preview.

The first revision I would make is shortening the height of those buildings in the background.  They look taller than 13 stories.

[droonus2000]

Those look spectacular! Please build as many as possible ASAP. But I may have an odd fascination with shotgun style homes, so grain of salt.

[GRLaker]

11 hours ago, droonus2000 said:

Those look spectacular! Please build as many as possible ASAP. But I may have an odd fascination with shotgun style homes, so grain of salt.

I have an odd fascination with Charleston style homes. Large front porches need to make a return in this area. I'm over the current small porch craftsman look that has taken over.

[GRLaker]

So question...Now that the real estate market is hot in Grand Rapids, why have we not seen a return of Pulte Homes to the Grand Rapids area? They built homes throughout Kentwood/Caledonia and Forest Hills in the 2000's but then disappeared after the recession. I think they brought a unique style to the area with their tall brick arched entries, large entry windows, brick throughout the front, etc. I'm surprised we haven't seen a resurgence from them to add some needed homes to the area and provide more than just Eastbrook and Allen Edwin mass built communities.

Edited June 26, 2018 by GRLaker

[MJLO]

1 hour ago, GRLaker said:

So question...Now that the real estate market is hot in Grand Rapids, why have we not seen a return of Pulte Homes to the Grand Rapids area? They built homes throughout Kentwood/Caledonia and Forest Hills in the 2000's but then disappeared after the recession. I think they brought a unique style to the area with their tall brick arched entries, large entry windows, brick throughout the front, etc. I'm surprised we haven't seen a resurgence from them to add some needed homes to the area and provide more than just Eastbrook and Allen Edwin mass built communities.

Pulte pulled out of GR because it was too small of a market.    I think they are focusing only on high growth bigger markets, I don't think we will be seeing their return.    It would be nice to see the return of a major home builder that could add 500-1000 units a year, but would the growth prohibitive/progress hindering township lobby even allow that much land to be developed? 

[GRLaker]

21 minutes ago, MJLO said:

Pulte pulled out of GR because it was too small of a market.    I think they are focusing only on high growth bigger markets, I don't think we will be seeing their return.    It would be nice to see the return of a major home builder that could add 500-1000 units a year, but would the growth prohibitive/progress hindering township lobby even allow that much land to be developed? 

It makes sense at that time, but GR is a different animal today than it was circa 2010. I know Ann Arbor is technically considered to be a part of the broader Detroit metro area, but it still is its own city and metro area that is less than half the size of Grand Rapids and its suburban cities/townships. Yet, Pulte builds there and in Saline. In Florida, they're in cities a fraction the size as well (Naples, Sarasota, Fort Myers). All fast growing areas but all have populations less than Grand Rapids and its metro area. So based on their current model, it makes little sense to not come back to Grand Rapids and take advantage of the growth and demand.

Edited June 26, 2018 by GRLaker

[demhem]

2 hours ago, GRLaker said:

So question...Now that the real estate market is hot in Grand Rapids, why have we not seen a return of Pulte Homes to the Grand Rapids area? They built homes throughout Kentwood/Caledonia and Forest Hills in the 2000's but then disappeared after the recession. I think they brought a unique style to the area with their tall brick arched entries, large entry windows, brick throughout the front, etc. I'm surprised we haven't seen a resurgence from them to add some needed homes to the area and provide more than just Eastbrook and Allen Edwin mass built communities.

Pulte =  http://mcmansionhell.com/101

[joeDowntown]

21 hours ago, KCLBADave said:

Thanks, when we have our full line up completed, I will upload some renderings.  In the mean time, here is a preview.

Dave, these look great. Question, it looks like the first 9 are individual infill lots. Do you any plans to do 5-6 in a row, similar to the rendering?

Joe

[GRLaker]

40 minutes ago, demhem said:

Pulte =  http://mcmansionhell.com/101

I don't disagree, but if you go through any Eastbrook or Allen Edwin neighborhood, you see the same house every four lots. We need more bulk builders in this area to meet demand. Right now our options are those two, smaller scale developer/builders like Bosgraaf and Tibbe, and custom builders. A third mass builder coming into the mix would do wonders for the over-inflated home price problem.

[MJLO]

2 hours ago, GRLaker said:

It makes sense at that time, but GR is a different animal today than it was circa 2010. I know Ann Arbor is technically considered to be a part of the broader Detroit metro area, but it still is its own city and metro area that is less than half the size of Grand Rapids and its suburban cities/townships. Yet, Pulte builds there and in Saline. In Florida, they're in cities a fraction the size as well (Naples, Sarasota, Fort Myers). All fast growing areas but all have populations less than Grand Rapids and its metro area. So based on their current model, it makes little sense to not come back to Grand Rapids and take advantage of the growth and demand.

Actually GR was growing faster during the 90s when Pulte was here than it is now.   All of the cities you mentioned (minus Saline which is spill over from Ann Arbor and Detroit) Are growing much faster than GR now.   One of the biggest side effects of Michigan's 10 year recession was the abdication of new investments from major national brands, and home builders ect.    The retail sector has noticed the uptick in economic growth and wealth in the area, however the national construction sector has not.  Although there's been a pull back in home building nationwide since the housing bubble burst, which has lead to multiple shortages in major markets not just Grand Rapids.  Pulte may simply not have the necessary labor resources to enter this market even if they wanted to.  

[ModSquad]

7 hours ago, joeDowntown said:

Dave, these look great. Question, it looks like the first 9 are individual infill lots. Do you any plans to do 5-6 in a row, similar to the rendering?

Joe

Joe, we are doing a configuration something like this on Bates West of Eastern in the South Hill Neighborhood.  Not quite as dense, but several in a row.

[ModSquad]

Here are some photos of today’s installation on Sigsbee,  We staged on Madison in a large lot north of Dickinson. And hauled the home over to Sigsbee.  We started at 8 AM with the first of 4 boxes and by noon all 4 were up.

The roof is hinged and is lifted in place before lifting the box.  We had a developer walk through who is interested in working with us on these in another area.  He builds and is known for Million Dollar homes.  He was blown away at the quality of materials and construction.  In his words, these are built better than stick built.

We will not finish installing the siding, put on a porch, button up the inside, flat work, and landscape.  Should be ready to be listed on the MLS in about 3 weeks,

[GRDadof3]

8 hours ago, GRLaker said:

I don't disagree, but if you go through any Eastbrook or Allen Edwin neighborhood, you see the same house every four lots. We need more bulk builders in this area to meet demand. Right now our options are those two, smaller scale developer/builders like Bosgraaf and Tibbe, and custom builders. A third mass builder coming into the mix would do wonders for the over-inflated home price problem.

Not only did Pulte pull out of GR, they pulled their HQ's out of Michigan and moved it to Atlanta. GR is probably not on their radar at all anymore. 

I would look though at some of the other national builders like DR Horton, Lennar, KB Home, Shea Homes, etc.. DR Horton though closed 41,652 homes in the US in 2016 (I haven't seen their 2017 numbers yet). Would building 300 - 400 homes in West Michigan be worth the effort? 

https://www.probuilder.com/2017-housing-giants-rankings

Tibbe's building company which now includes Interra Homes did about 300 homes last year I believe. They're definitely in the top 5 locally now. 

 

[Allison Slater]

On 6/26/2018 at 8:14 PM, KCLBADave said:

Here are some photos of today’s installation on Sigsbee,  We staged on Madison in a large lot north of Dickinson. And hauled the home over to Sigsbee.  We started at 8 AM with the first of 4 boxes and by noon all 4 were up.

The roof is hinged and is lifted in place before lifting the box.  We had a developer walk through who is interested in working with us on these in another area.  He builds and is known for Million Dollar homes.  He was blown away at the quality of materials and construction.  In his words, these are built better than stick built.

We will not finish installing the siding, put on a porch, button up the inside, flat work, and landscape.  Should be ready to be listed on the MLS in about 3 weeks,

This is exactly the type of innovation / approach I was just telling people we need to help bring more affordable housing to the market more quickly. Now if only this were done on a larger scale. Thank you for being awesome.

[joeDowntown]

GR Press coverage:

https://www.mlive.com/news/grand-rapids/index.ssf/2018/06/from_vacant_grand_rapids_lot_t.html

[ModSquad]

On 6/29/2018 at 7:40 AM, tSlater said:

This is exactly the type of innovation / approach I was just telling people we need to help bring more affordable housing to the market more quickly. Now if only this were done on a larger scale. Thank you for being awesome.

We did three houses in 3 days, here are the photos of each one before we start finishing the exteriors and button up the inside.    On Thursday we ordered 6 more and will be doing these all in one week later this summer.  With proper planning and site work completed, InnovaLaB (formerly Kent County Land Bank) has built the capacity with Champion Modular Homes to put in several homes a week going forward.  As long as the home meets current zoning requirements with set backs, transparency, etc these can be installed by pulling a building permit.

These first three were very specifically closen as I believe it exhibits how modular can be done to fit any neighborhoods design aesthetic.  Herrick is in a cul-de-sac with all ranch homes, Sigsbee is on a block with several talk narrow homes that look kind of like a farmhouse, and Cooper is a traditional neighborhood.

We will very soon have a show room set up in our offices on Division where buyers can come in, choose one of our lots, a home design, and then pick their interior finishes.  Once they order their home, we can have it ready to install in 6-8 weeks depending on scheduling .

[GRDadof3]

17 minutes ago, KCLBADave said:

We did three houses in 3 days, here are the photos of each one before we start finishing the exteriors and button up the inside.    On Thursday we ordered 6 more and will be doing these all in one week later this summer.  With proper planning and site work completed, InnovaLaB (formerly Kent County Land Bank) has built the capacity with Champion Modular Homes to put in several homes a week going forward.  As long as the home meets current zoning requirements with set backs, transparency, etc these can be installed by pulling a building permit.

These first three were very specifically closen as I believe it exhibits how modular can be done to fit any neighborhoods design aesthetic.  Herrick is in a cul-de-sac with all ranch homes, Sigsbee is on a block with several talk narrow homes that look kind of like a farmhouse, and Cooper is a traditional neighborhood.

We will very soon have a show room set up in our offices on Division where buyers can come in, choose one of our lots, a home design, and then pick their interior finishes.  Once they order their home, we can have it ready to install in 6-8 weeks depending on scheduling .

So between site acquisition, permits, foundation, utilities, build and then installation, how long does it take to deliver a home like this? 

The comments on Mlive are so typical for Mlive.  I know from my days right out of college working at Foremost Insurance "If it doesn't have a chassis, it's not a mobile home folks." 

[Pattmost20]

1 hour ago, GRDadof3 said:

"If it doesn't have a chassis, it's not a mobile home folks." 

Gotta have that Affidavit of Affixture.

[ModSquad]

4 hours ago, GRDadof3 said:

So between site acquisition, permits, foundation, utilities, build and then installation, how long does it take to deliver a home like this? 

The comments on Mlive are so typical for Mlive.  I know from my days right out of college working at Foremost Insurance "If it doesn't have a chassis, it's not a mobile home folks." 

Jeff, reading MLive comments is about as constructive as watching grass grow.

The key to it all is having a home that has a State stamped approval. Michigan is WAY behind the times on this issue. LARA has to approve the drawings. We got one approved in two weeks, another took 90 days, no rhymn or reason to it.

We will soon have 13 different house designs approved, and several of those can have 4 or 5 variations.

With an approved plan, one we order a home it is no more than 4 weeks and the home is built and ready for delivery. Our first 3 were done on two weeks.

All of our homes meet all local zoning and building codes. We are provided with a full set of stamped fully engineered specs. A local architect did our foundation plans. These plans detail loads for the foundation and how the house connects.  These drawings are done for all of our homes.

We then pay the architect to do a site plan for the home and the lot. Going forward, that’s our only cost on architectural.

With building and site plan approval we are good to go do excavate and prepare the site for the house.

I would say 90 days start to finish is the maximum length of time to have the house done and ready to move in, if pre ordered or hit the MLS is it’s spec.