Nation's Building News Online

Spotlight on: Sacramento, CA

Local HBA:
    BIA of Superior California
President:
    Brendan O’Neill, CFO of Beazer Homes
Executive Vice President:
    John R. Orr, CAE 
Membership:
    720

By Brendan O’Neill, president of the BIA of Superior California

Vital Stats:

• Metro population:  2 million
• Price range for starter homes:  $200,000-$250,000
• Price range for trade-up homes:  $250,000-$350,000
• 2002 housing permits (Sacramento and surrounding counties of El Dorado, Placer and Yolo):
  • 18,419 single-family
  • 4,566 multifamily

Outlook for 2003:

Last year was probably our strongest year in history for new-home sales, so we are expecting a little slowdown from that — the forecast is 4.5% or 5% down. That would still be very good for us. Things did slow down a bit in January and February, but have been picking up again in March.

Biggest source of concern for builders:

Possibly our biggest issue is availability of lots for development. From a sales standpoint, the question is, “Will we have enough land to build on?” It’s not that we’re using up all the land — we don’t have any real geographic barriers to contend with — but because it is so difficult to get land that’s entitled. It’s the environmental and political issues that are keeping land out of the pipeline.

Sponsored by: Countrywide Home Loans

Learn how to reduce financial risk and convert leads faster with Countrywide's One-Time Close Loan.
Check out the best part about Countrywide's EasyWay loan -- little or no down payment for qualified borrowers.

Market trends:

For the past 10 years or so, energy efficiency of homes has been steadily increasing. That’s partly driven by new technology, and partly by the California Environmental Protection Agency.

In terms of construction, stucco has really become the standard for home exteriors, and roof tiles are the standard in roofing — no wood or fiberglass.

Home buyers are also seeking more amenities and homes continue to grow in size, although there is also a significant market at the other end of the spectrum for smaller homes. This market is being driven by empty nesters who may want less home to take care of now that the kids are gone.

We’ve become a very strong market for retirement homes. Pulte Homes is the largest provider of age-restricted communities in the area (under the Del Webb, Sun City name), though there are several other national and local companies building homes for this burgeoning market.

For homes 2,500 square feet and greater, the three-car garage has become a standard. People have come to expect that. Meanwhile, lot sizes have been shrinking because of the cost of land. Smaller lots are more the rule today.

Sponsored by: 2-10 Home Buyers Warranty

Need to Buy General Liability Insurance?
Are You Controlling Your Exposure to Moisture, Mold and Fungus?
Do You Know How to Compete for Insurance Dollars and Coverage?
Insurance Coverage a Challenge?