By:Jessica Zimmer
W ith construction costs high, North Bay property owners are waiting for the Federal Reserve to decrease interest rates before talking to contractors. They are concerned they will not see a return on investment on new buildings if they sell. Despite such hesitancy, the North Bay is seeing comparatively more construction than other parts in the Bay Area, especially San Francisco. The North Bay has constructed a great deal of multilevel residential housing in metropolitan areas. Local property owners are also making progress building on wildfire-affected lots. “Individuals buying and building new homes today are either people of means or taking a longer-term approach,” says Jason Lorenz, senior vice president and regional manager of commercial banking for construction for Bank of Marin, which is based in Novato. Inflation is another reason for the slowdown. Costs for materials and labor and costs for fuel have increased sharply in the past 18 months. “The combination of these factors is a recipe for developers and builders to press the brakes. A decrease in interest rates will open more doors,” says Lorenz.
Supply chain delays, materials costs and labor shortages are proving formidable challenges to the North Bay construction industry.
April 2024
NorthBaybiz 19 NorthBaybiz 19
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