There’s no doubt that 2017 was a rough year for California builders. From the Big Sur landslide to the record-breaking wildfires, there has been a lot of devastation – and it’s taking a toll on commercial property builders in Santa Rosa, alongside all the individuals who have been affected. We, at Holly & Associates, along with the rest of the industry, will be working overtime in 2018 to try to repair the damage – but it’s going to take time.
In this blog, we wanted to provide a brief overview of the many challenges that will be facing commercial property builders in Santa Rosa and the surrounding areas. The rebuilding efforts would take a long time under normal circumstances, but there are several confounding factors that are making the situation even worse.
The Biggest Challenges to Rebuilding Sonoma County In 2018
- The sheer extent of the damage
Simply put: there are far more damaged homes and businesses than there are builders available. Nor is a construction company something that can be set up at the spur of the moment! Most builders were already near capacity prior to the fires, so they will have to balance their time between fulfilling existing obligations and taking on reconstruction work.
- A labor shortage
While not something that had been a major news item, the construction industry has been facing a moderate labor shortage in recent years. It wasn’t a big problem before, but now it could confound the efforts of builders to expand their operations.
- Lumber shortages
Lumber was becoming more expensive prior to the fires. Now, prices are expected to skyrocket. That’s going to slow down rebuilding even further, as well as driving up costs for anyone without sufficient insurance.
California is well-known for having some of the strictest building policies in the country. Normally, we consider this a good thing – but there’s genuine concern that administrative channels are going to be overwhelmed with permit applications and other red tape. Fortunately, there’s also a strong push to reduce the paperwork – at least temporarily – so that regulations don’t become another barrier to rebuilding.
In short, rebuilding Sonoma will be a major challenge for commercial property builders in Santa Rosa, alongside building-owners. If you have been affected by the fires, and need advice on how to proceed, please contact Holly & Associates for more information.