Construction Costs on 30a

[Jellyfish]

Hi- been lurking for a while, really useful site, great info and have enjoyed most of the banter! We've been vacationing in SoWal for years with intent to buy eventually, so glad to see prices (apparently) taking a little bit of a breather from going up 20% a year. I am hoping it will be more of a balanced (ie: non speculative) market over the next couple of years with all the factors coming into play (interest rates, build out dates, storms, etc).

After cashing out of some West Coast property (if you think SoWal prices are high, go out to CA, Long Island, etc :shock: ), I will be able to jump on a great deal, not in a particular hurry. Have not decided to buy a lot or finished house, probably depends on what best deal is.

At this point probably looking for a non-overly planned (ie: Watercolor, etc) community, not on beach but within easy bike/walk, typical plank/tin roof FLA cottage style with average finishings. What cost per SF can I expect in SoWal at this point?

 

[Smiling JOe]

Hi- been lurking for a while, really useful site, great info and have enjoyed most of the banter! We've been vacationing in SoWal for years with intent to buy eventually, so glad to see prices (apparently) taking a little bit of a breather from going up 20% a year. I am hoping it will be more of a balanced (ie: non speculative) market over the next couple of years with all the factors coming into play (interest rates, build out dates, storms, etc).

After cashing out of some West Coast property (if you think SoWal prices are high, go out to CA, Long Island, etc :shock: ), I will be able to jump on a great deal, not in a particular hurry. Have not decided to buy a lot or finished house, probably depends on what best deal is.

At this point probably looking for a non-overly planned (ie: Watercolor, etc) community, not on beach but within easy bike/walk, typical plank/tin roof FLA cottage style with average finishings. What cost per SF can I expect in SoWal at this point?

Much of the costs are determined by the materials used. The average beach home with medium grade finishings will run you around $145-$175 per heated cooled sf if you hire a builder to build it. Architect fees will be additional and can vary greatly.

 

[DBOldford]

This is one of the reasons that South Walton home prices are still a screaming bargain compared to CA and some other locations. In our Napa Valley community, which is obviously not coastal, construction costs for residential structures start at around $400 per sq. ft., not including the architect's fees or building permit fees and plan check for approval of the drawings. Still, real estate continues to increase in value at a high rate than anywhere in the nation. Why? Our growth management planning exerts a very strong control over how much is built every year...so supply and demand.

We are also very deliberate about protecting our agricultural lands and quality of life for residents already here and we make new development pay its own way. The developer has to offer more than just property tax (always a negative) and bed tax incentives. They are required to build a certain amount of affordable housing, pay for road and other infrastructure improvements, and provide open space and park land. I am working on two small luxury inns in our area, one a 40-room inn that will provide 14 units of workforce housing and a complete historic restoration and the other a 20-room inn that will provide at least 10 workforce units. It is the cost of doing business in a nice area that many people are drawn to. Makes me sad to see all these big developments going on in South Walton, especially hotel and resort projects, with absolutely no requirement that they contribute to the growing need for workforce housing for lower-income service workers. When there is finally a wake-up call, the need will be overwhelming and the acceptable projects smaller in scope so far less likely to make such requirements feasible.

 

[Snapper Grabber]

There is at least one really good deal in Grove by the Sea at this time. Have you discovered that neighborhood? It is in a great location with the beach being a very short walk or bikeride away. Turn north on Andalusia Ave, less than one mile east of Seaside.

 

[SHELLY]

Makes me sad to see all these big developments going on in South Walton, especially hotel and resort projects, with absolutely no requirement that they contribute to the growing need for workforce housing for lower-income service workers. When there is finally a wake-up call, the need will be overwhelming and the acceptable projects smaller in scope so far less likely to make such requirements feasible.

I think it's already too late for most of SoWal. Only after residents find out they can't get a service technician, pizza guy or fireman to come to their house will they put 2-and-2 together...in the meantime the developers are counting their money and moving on to the next "upscale" project.

 

[Jellyfish]

This is one of the reasons that South Walton home prices are still a screaming bargain compared to CA and some other locations. In our Napa Valley community, which is obviously not coastal, construction costs for residential structures start at around $400 per sq. ft., not including the architect's fees or building permit fees and plan check for approval of the drawings. Still, real estate continues to increase in value at a high rate than anywhere in the nation. Why? Our growth management planning exerts a very strong control over how much is built every year...so supply and demand.

We are also very deliberate about protecting our agricultural lands and quality of life for residents already here and we make new development pay its own way. The developer has to offer more than just property tax (always a negative) and bed tax incentives. They are required to build a certain amount of affordable housing, pay for road and other infrastructure improvements, and provide open space and park land.

Don't disagree with the community benefits, but this jacks the prices up to levels that force out most regular folks. I seriously doubt the majority of homeowners that currently are in SoWal could afford the beach life if it cost $400/sf to build a basic Fla cottage and the lot prices are doubled or tripled. A little more attention paid to intelligent growth in SoWal would be nice, but hopefully not overreglated, CA style.

 

[Jellyfish]

There is at least one really good deal in Grove by the Sea at this time. Have you discovered that neighborhood? It is in a great location with the beach being a very short walk or bikeride away. Turn north on Andalusia Ave, less than one mile east of Seaside.

Funny you mention that, we have rented in there several years running. About five years ago we rented in there and the typical house was around$500K. They seemed to go up about 100K/year, last summer a few were for sale, all +/- 900K or so. I like the fact you can bike to Seaside.

 

[Smiling JOe]

Don't disagree with the community benefits, but this jacks the prices up to levels that force out most regular folks. I seriously doubt the majority of homeowners that currently are in SoWal could afford the beach life if it cost $400/sf to build a basic Fla cottage and the lot prices are doubled or tripled. A little more attention paid to intelligent growth in SoWal would be nice, but hopefully not overreglated, CA style.

I don't know your definition of "regular folks," but the people whom I place in that category were priced out of this area two years ago.

 

[DBOldford]

I agree with SJ. At some point, affordable housing is no longer "for sale" housing. South Walton reached that point two years back. Service jobs and other lower-paying jobs will require "for rent" properties where income levels can be qualified and rents controlled in association with the area income levels. Until fairly recently, there was affordable housing in the north County but that came to a halt with the price increases of last year. County Tax Assessor tells us that the County-wide property values were up some 70%.

Dormitory living may seem unattractive to some, but with the right amenities and pricing, it can be far more attractive than driving an hour or more each way to a job that doesn't pay that much to begin with. We have very nice "dorms" for our seasonable farm workers, who seem to like the convenience and the comaraderie and who do not miss the long drives on traffic-filled two-lane highways. They have clean showers/bathrooms, good and plentiful meals, and bigscreen televisions. In fact, one well known winery hired a "California cuisine" chef for their dorms, only to lose almost the entire workforce to another winery, who hired a cook to prepare traditional Mexican items! Some wineries hire almost the entire village from Mexico during picking season and they come back year after year. Medical care is offered via a charitable foundation called "Clinic Ole," one of the best supported charities in our Valley. There is a way to do this, but it takes a willingness to recognize that businesses are not a gift to the area. Rather, the gift is to them.

FYI, these dorms do not house just Hispanic seasonal workers. We also have a lot of kids who are interested in viticulture and winemaking, who works the harvest as part of their college programs. They can't afford housing, either and often don't have medical care but for Clinic Ole.

 

[Smiling JOe]

I agree with SJ. At some point, affordable housing is no longer "for sale" housing. South Walton reached that point two years back. Service jobs and other lower-paying jobs will require "for rent" properties where income levels can be qualified and rents controlled in association with the area income levels. Until fairly recently, there was affordable housing in the north County but that came to a halt with the price increases of last year. County Tax Assessor tells us that the County-wide property values were up some 70%.

Dormitory living may seem unattractive to some, but with the right amenities and pricing, it can be far more attractive than driving an hour or more each way to a job that doesn't pay that much to begin with. We have very nice "dorms" for our seasonable farm workers, who seem to like the convenience and the comaraderie and who do not miss the long drives on traffic-filled two-lane highways. They have clean showers/bathrooms, good and plentiful meals, and bigscreen televisions. In fact, one well known winery hired a "California cuisine" chef for their dorms, only to lose almost the entire workforce to another winery, who hired a cook to prepare traditional Mexican items! Some wineries hire almost the entire village from Mexico during picking season and they come back year after year. Medical care is offered via a charitable foundation called "Clinic Ole," one of the best supported charities in our Valley. There is a way to do this, but it takes a willingness to recognize that businesses are not a gift to the area. Rather, the gift is to them.

FYI, these dorms do not house just Hispanic seasonal workers. We also have a lot of kids who are interested in viticulture and winemaking, who works the harvest as part of their college programs. They can't afford housing, either and often don't have medical care but for Clinic Ole.

California is not the only place with dorm type housing for employees. In several Parks in the US, the National Park Service houses its seasonal employees in these dorms. Also, I know that the Nantucket Golf Club has a dorm for most of its employees, and they also provide a few houses for the managers. A year ago, I suggested that we need dorm type of facilities, but the developers showed no interest. They want no money on the table at the end of the day. They are quick to get in, and want to take their profits out just as quickly, so that they are not the last one standing, when the music stops.