“Home construction at lowest level since October”- Well, Duhh!
In an article entitled Home Construction at Lowest Level since October The Associated Press reported,
“Home construction plunged last month to the lowest level since October as the economy remained weak and demand for housing plummeted”.
Frankly, I am not surprised. With over 11,000 inspections under my belt I have found that new construction tends to have the most deficiencies and, therefore, the highest repair budgets.
It seems as if the people with the money to buy newly constructed homes and condominiums have lost faith in builders and developers who are increasingly cutting corners in an attempt to save money and expedite the construction process (after all, they were hit by the failing economy too). And, with all the horror stories about bankrupt developers and abandoned construction sites, the new construction market couldn’t be less appealing to home buyers.
Cities desperately needing money, architects afraid of lawsuits, and builders looking to maximize their profit potential before the Code changes creates a perfect storm, resulting in lots of money exchanging hands, some taxes, and empty, sloppy construction that no one complains about and no one repairs. In to this, walks an innocent consumer who simply wants a nice, new house but instead gets a whirlwind of code violations and significant deficiencies. The builder won’t fix the split face block that’s creating mold all over the house, the cities don’t force the builder to fix the block (or stop the mold), and the home buyer stands in disbelief, jaw dropped and dead broke as the problems continue to manifest and the expenses continue to climb.
So how do we change consumer opinion and restore their faith in the new construction market? We must acknowledge that its time for a paradigm shift. New home sales would increase with more supervision of the process resulting in high quality, professionally built homes and condominiums. I recommend this be done by regular, periodic and unannounced inspections of new construction by qualified inspectors in the area. Until this happens home buyer will continue to flock to the thousands of cheap foreclosed homes and the new construction market will continue to fail. We, as real estate and construction professionals must work to gain back the consumer’s trust. This is the first and most essential step in restoring the market.