Real estate development in California is a lucrative and complex business. Like any business that involves heavy investment, developers generally tend to favor projects that have the greatest return on an investment, but this is not the only factor to consider. As one of the largest economies in the world, California faces a difficult balancing act between expanding the business capabilities of the state and her cities, while also providing housing to meet the needs of the ever-increasing population.
As a resident of California, it should come as no surprise to you that we suffer from a near constant housing shortage. Even as businesses continue to expand, California’s single greatest new construction need is for housing near business centers, both short and long-term. In the 1970s, the popularity of urban sprawl spread out housing miles away from primary business centers. However, as population has increased, the prospect of living in suburbs becomes less and less plausible for those who work near major city centers.
If you are weighing your development options, taking an opportunity to lean into the need for housing near major business centers meets a pressing need for the state. It may also provide some good long-term investment prospects.
Making your mark as a developer is a lengthy process, and one that we collectively depend on for our housing and places of business to function. Even in the best of circumstances, development requires crossing many t’s and dotting many i’s. No matter what development project you have before you, be sure to consult with an experienced attorney to ensure that your project cuts through all the red tape while protecting your rights as a developer.
Source: Urban Land, “Addressing California’s Greatest Real Estate Need,” Jan B. Brzeski, accessed Aug. 25, 2017