REAL ESTATE NEWS

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."

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

Unpacking the Institutional Landscape

Multifamily Execs Share Insights and Strategies

Hessam Nadji: Navigating the New Real Estate Landscape

Source: GlobeSt/ALM