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Being a general contractor by trade, and planning to relocate to ID in the next year or two, brings to mind a business-related question. I have been looking at housing prices with the dual purpose of planning for my own COL, and determining the best path forward for my chosen method of financing that COL.
My question: Is there a real need for "affordable housing", meaning 1500 sq.ft or so, 3/2 houses on small lots for less than 200,000? Or is it more likely that nicer homes on 5 or more acres with a nice shop will sell? I will be able to do either, with the profit margin being higher on the latter option, but the time and capital investments will be less on the fist option. What I need to do, is tap the widest cross-section of the market with the most desirable housing.
I realize that the objective may differ in various areas, so for reference, we are looking at Bonner/Boundary counties, as well as all counties with a decent commute time to Idaho Falls and Pocatello. As far north as St. Anthony, as far south as American Falls.
As an aside, information on the local building regulatory environment in these areas is also appreciated.
Both Bonner and Boundary counties have some good info on their websites regarding local regulations and zoning. You can find detailed zoning maps there as well.
In this area of north Idaho the only place you'll find homes on small lots is generally in the towns themselves. Lots on the lake are smaller, say 1 acre or less typically, but there people are generally building very high end custom homes. Outside the towns of Sandpoint, Bonners Ferry, etc these counties are mostly zoned for at at least 5 acre lots, if not 10.
My sense from driving around Sandpoint and Bonners Ferry is that there isn't a lot of empty space in town that doesn't already have something built on it, so I'm not sure how big an opportunity there is for the 1500 Sq Ft 3/2 homes you are talking about. Don't get me wrong, there is some stuff like that being built, but I suspect it's a small opportunity and already well served by local builders.
I am not an expert on this topic, this is just based on my casual observations around the area.
Being a general contractor by trade, and planning to relocate to ID in the next year or two, brings to mind a business-related question. I have been looking at housing prices with the dual purpose of planning for my own COL, and determining the best path forward for my chosen method of financing that COL.
My question: Is there a real need for "affordable housing", meaning 1500 sq.ft or so, 3/2 houses on small lots for less than 200,000? Or is it more likely that nicer homes on 5 or more acres with a nice shop will sell? I will be able to do either, with the profit margin being higher on the latter option, but the time and capital investments will be less on the fist option. What I need to do, is tap the widest cross-section of the market with the most desirable housing.
I realize that the objective may differ in various areas, so for reference, we are looking at Bonner/Boundary counties, as well as all counties with a decent commute time to Idaho Falls and Pocatello. As far north as St. Anthony, as far south as American Falls.
As an aside, information on the local building regulatory environment in these areas is also appreciated.
Hi Country boy,
A few additional things to consider. If you come to the Idaho Falls area the properties you would like to build, residential, are all available and thriving. Our builders can't hire enough skilled labor to complete projects. I'd encourage you to check out WY's requirements for licensure as well. Our general contractors and builders often build in Jackson Hole, WY. The biggest PM/GC work in about 14 -20 states. Smaller ones stay busy too. Check with the state licensing though. Many projects are moving to the new PM/GC license (I might have flipped those letters).
There is sooooo much construction scheduled for the Idaho Falls area. What's your comfort level building student housing for BYU-IDAHO in Rexburg? Rexburg is still building more and more apartments for the students.
Can you get the security clearance to build at Idaho National Laboratory? (INL) It's estimated one project alone will require 1,000 employees for construction. Then there are the other projects that will need expansion. The one requiring 1,000 building professionals will result in 13,000 more jobs in the Idaho Falls area. Obviously those different employees will need new buildings where they will work and houses to live. How do you feel about Townhomes? Millenia tend to like them.
Plan on building cabins in Island Park and Palisades plus other locations. The local builders are working as fast as they can. There are about eight major Subdivisions under construction with 7-9 more probably starting within a year.
Building is one of Idaho Falls' four core economic drivers. Pocatello is only 50 miles away.
I'd encourage you to send a private message to Theotherdude. Tell him I sent you. I'm not comfortable writing his exact occupation openly, simply for his privacy sake. Anyone who is a GC or builder, sub-contracts with businesses such as his employer. He can tell you a lot in detail about what is happening on the east side of the state. Ask specific questions.
Thanks for the replies. The majority of my experience is in residential construction, with much of that having been work on high-end custom homes. My commercial experience has been largely in restoring original urban structures to useful commercial spaces, such as office space, restaurants, and shops. I have been the project superintendent for several of these projects. I will take a job if it becomes necessary, but I am more interested in providing needed housing for an area and creating work for local trades. I have built everything from a doghouse to a three-story, 12,000 sq. ft. custom home, and everything in between, so I can do whatever I need to, but I am trying to pick a niche and roll with it.
I am not interested in crowding the hills with giant show pieces for summer places, nor am I interested in building cheap housing that will become HUD housing. I am interested in building quality housing for the family that needs a comfortable place to live but is not going to spend a million to get it, which is what I tend to think the average buyer would be, in most places.
Licensing should not be an issue for me, unless there is some board that tends to deny it to non-union status or other criteria. I can test into just about any license I need to. I am currently a licensed GC here.
I have looked at the county sites for planning and zoning, and building codes. I am looking more for information on the general workings on the ground, when it comes to dealing with inspectors and such. More the intangible aspects of the regulatory environment. Are the county commissions decent to work with? Are inspections prompt when called for(within 24 hours)? Are the inspectors knowledgeable and do they operate strictly from the code? Really, I am trying to get a feel from locals for the overall efficiency and competence of the local regulatory agencies connected to construction.
Especially in Boundary you'll have a lot of trades who are "handyman" types. There is also a strong Mennonite worker presence here, and from my experience, they are good at their trade. But punctuality is going to be something with which you struggle sometimes.
While my personal experiences have'nt been recent, and are limited to Idaho Falls, I've found the inpsectors here to be firm in their safety standards. They follow the codes strictly, but do offer alternatives to a
problem that are within the limits of a code.
In my experience, they do give a contractor enough time to correct a problem, too. When a problem arises, it's always better to call them first. As long as they know about it, they are more lenient in getting it fixed.
Traditionally the Bonneville County Commissioners have been fully on the side of development in the county.
Too lenient, sometimes, in granting subdivision permits in my opinion.
The inspectors are responsive, for sure, especially if a contractor calls and arranges an inspection beforehand, giving them some time. I believe they're competent.
I can't say anything about how it is in our neighboring counties at all, but I'm sure some contractors in them could. Bonneville is surrounded by Jefferson, Butte, Bingham, and possibly some other counties (don't have a map at hand, and Bonneville's limits thread their way eastward all the way to the Wyoming state line in some of its most remote areas.) other counties may have different standards and codes.
It really depends on the area you want to operate. For instance, Bonner county has no traditional building department but you still have to file the plan you intend to build. Kootenai County follows 2012 IRC with the additional requirement of engineering required for any header over 6'. Coeur d'Alene is big on fanatically inspecting the rise and run of the stairs. I would not rush into the starter home business in Idaho. There are some big players that have figured out how to throw together a cheap product and sell it cheap. You will not be able to compete with them. Everyone wants to be doing new structures. If I were to say a niche that is a little lacking, it would be remodel contractors. I used to do it, now I do the plans and blueprints. For anyone reading this that doesn't know - A remodel takes more knowledge than new construction.
Most of my experience over the past 25 years has been in the Treasure Valley (Boise area). It is very difficult for a contractor here to compete at the entry level since several builders are building out entire communities to get economies of scale that are tough to beat unless your pockets are deeper than theirs.
The margins are much better on larger custom homes but of course so is the risk. Since you are used to building in that market, I suggest capitalizing on that experience and sticking to what you know.
Locally, each city, county and agency is different on their inspection turn around times, but you just lean to deal with them and factor them into your scheduling. For example, it is hard to estimate the weather to know when you can dig the foundation, but after that - you are in more control. Therefore, many of the builders just quote X days from pouring foundation as a completion estimate.
If you are trying to build a home correctly and not cut corners, the inspectors will not be an issue. If you get creative, they might try to make an example out of you, but you will get through it.
Where ever you decide to build your new company and homes, I suggest joining the local building contractor's association and getting involved. It will help you fast track into the business.
Good information, folks. I appreciate it. Looks like my initial plan of a bit nicer homes with shop on acreage is the way to go. Not really that risky, since building one and living in it until it sells before starting the next is an option.
I do not build cheap, I build better than code, and generally form good relationships with inspectors and planners. I was well-regarded in St. Louis county here, and have had an inspector final out an inspection on a custom deck- when he was there to do a footing inspection. I built the deck frame, which came off a second floor door, on temporary bracing, dropped plumb lines and dug the piers, then called for footing inspection. Got there the next morning, inspection schedule filled out and signed off on. Called the county, was informed the job was approved and filed as finished. The inspector knew me and knew my work, and assumed I would do it right. Which I did. He should not have done it, but it illustrates how one can develop a reputation simply by doing it right, all the time, every time. I had great relationships with the county, which is known in the trades to be hard to work with. I expect the same dynamic to develop wherever we land, given enough time and exposure. In my experience, code officials are easy to get along with as soon as they realize you consistently build to a standard that exceeds requirements. I enjoy being on good terms with competent inspectors and planners, and I enjoy their reactions when they see the product and it exceeds what they expected to find.
I had a situation several years ago, with an insurance job, where a large tree had fallen on a house and caved in the roof, just before it rained for three days. The house was trashed. Submitted plans to the city for the project, and they blew a gasket when they saw I planned to stick-frame the roof. They demanded I use engineered trusses. The insurance company refused to pay for engineered trusses, stating that the original roof was stick-framed and that's what they would approve. I worked through the code issue with the city, educated the planner and inspector on the section of the code covering stick-framing a roof, and they reluctantly approved the plan and issued the permit, stating that the only reason they approved it was the insurance company's refusal to pay for anything else. I finished it and called for a framing inspection, and when they showed up to inspect it, their jaws literally dropped. After seeing the product, they were so enamored with the new vaulted ceiling free-spanning the width of the house, they told the owner they ought to make his house the designated storm shelter for the subdivision. A very gratifying result for me...
The IF area is sounding like it is entering a boom, which is a strong draw, as a booming economy is a good place to make a living, especially in construction. I need to look harder at that area in particular. We love NID, but I am concerned about the economy there. If IF is truly on a roll as it sounds like, the opportunity there is a major consideration.
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