Real Estate Development, Explained

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

This is awesome - thank you!!!

You cannot let developers decide parking limits. You will end up parking at Walmart and walking home

You forgot the solution where cities could take over as a developer for non-market housing and development of other projects necessary for the city but not appealing to organizations paid to be shortsighted

Do not like seamless transition into the ad at the end. It's actually jarring to realize suddenly that the content of the video is over.

Borrowing money from all the investors makes development %40 more expensive than design and construction cost. That’s right. If the project costs $100M, only $60M goes to design and construction. The rest are ‘Soft Costs’. People ought to build Co-Op condos 🏬 if they want quality building at cost. Developers aren’t solution. If you worked with any of them, you know they are the problem.

Could you do a video about the housing policy of Singapore? It's something so completely different from how it's done in North America and I'd love to hear your take on it!

I still think that until housing is removed from the profit cycle and treated more as the necessity it is, the over analyzing and cost drive up from investors grubby hands will still contribute to housing shortages.

It should also be pointed out that researching what is and isn't allowed in a certain zoning district can be surprisingly difficult. It can even be difficult figuring out what the zoning classification is for any specific property. Cities and counties would do well to increase transparency here.

This video was so helpful! Probably not getting the attention it deserves but long term, it will be a great teaching tool

Where do I get that Real Estate version of Monopoly?

Or you know, cities could build their own housing.

Blackrock investment group

As a planner working as a Real Estate Analyst, you did amazingly at explaining the process

People, especially in the leftist urbanist sphere, often like to demonize these people for all the problems going on with housing and urban planning but in reality, developers have to walk a very tight rope between all the rules and financial viability to make anything happen. It's pretty risky as well because if anything goes wrong with the project or building they will be held liable and pay the price. I have immense respect for these people, I don't think I could handle that amount of stress.

Seems to me the city would be the first port of call. What land is available? Guess that is the European thing to do. The second thing: What is the city planning.

I still can't get over the fact that you guys built your homes with wood in America. Hahaha, what a joke! I personally like to live in a building not a a piece of furniture that gets wobbly over time and quickly turns into ash after a fire.

I thought they were called "5 over 1" because wood frame construction is type 5.

If only there were another way

The idea and execution of the monopoly board were fantastic 🎉

Currently in the MRED+D program at Berkeley and how you describe everything is very informative!! We need more people wanting to create and build more opportunities 😄

Won’t someone think of the poor property developers 😢😢😢

Bro. Did you just make an apologia for real estate developers? The vampires ruining every city in the US.

Because before this War 2 main powerful castles of Islam, Turkey and Saudi Arabia were destroyed and since Pakistan was the last castle of Islam, then it was very essential to defend Pakistan in order to save Islam. Imam Mahdi Muhammad Qasim Dreams

Ha, SLO. I was just there last weekend trying to convince my wife we should move there . . . .

Basically, capitalist housing ensures near total dependency on the wealthiest people and institutions and their discretion of profitability and personal interest. And then developers build what's cheapest to charge the most to chase after what's trending in a market. And near the whole of our built environment comes from this gambling. How does anyone who's not wealthy support feudalism?

This entire video just reaffirms my belief that capitalism will never be able to (or even want to) solve the housing crisis

I wish there was a lot more affordable housing that are ADA friendly. There are a lot of families out there that also take care of their elderly parents/grandparents with mobility issues or just have at least one disabled family member regardless of age. At least 1 in 10 families are in that situation. This number jumps higher for non-white population

I like vacant lots

This video is a very good way to convince those in San Luis Obispo to agree to add a multi-family development.

I hope it happens 😀

Wow, what a solid explanation of a complex process. Great video

Great video on a part of the process that often gets overlooked.

As someone with several years of experience managing apartments both in SoCal and Seattle, I'd just like to adjust your baseline for the number of units that you need before getting full-time onsite management. I've worked with plenty of buildings in the 30-70 unit range that featured at least 1 FT manager and 1 FT Maintenance tech.

Perhaps 150-200 units is where the tipping point lies between hiring a management company vs managing it yourself, but from about 30 units on up, that management company should ideally be hiring dedicated, full time staff for your property.

Dude, in-unit washer and dryer is a quality of life thing. Granite countertops is a wasteful show of money. Please don't combine the two in such a dismissive way.

why would you want connections to brokers? they're broke...yuck

you got this wrong, obviously the capitalists build the city, who do nothing but profit off of the labor of other people

City planning: exists

India: We don't do that here

Parks and Rec reference 🤌

In before the HOA decides to regulate my gardens.

[talking about concrete base, wood on top construction] "any sort of common urban apartment in your city is probably this type of building"

... if you live in the US

Construction being one of the easiest and most straightforward parts of the process says everything you need to know about why there is currently such a housing shortage

Thank you @CityBeautiful for shedding light on a critical segment of the city building process that gets too little exposure.

To go even further into the weeds, how about a video about how mixed use multifamily structures are permitted & built, given the single use zoning that dominates American city planning?

Parks and Rec! "You just got jammed!"

Capitalism is crazy and property is theft.

Great insights on the housing market! The housing affordability crisis is indeed a significant issue. The suggestion of spending more than 30% of income on housing might be a reality for some, but it's not a sustainable solution. It's concerning to see people resorting to second jobs or cutting back on essentials to afford housing. However, these shifting dynamics present potential opportunities for those ready to invest. It's evident that the Federal Reserve's policies have far-reaching implications for the housing market, making real estate a journey of long-term investment. Amid these fluctuations, I've ventured into new investment avenues. Thanks to the guidance of a mentor, Mrs Brianna Pearce, my portfolio has seen significant growth in just 5 weeks.These are indeed turbulent times, but as the saying goes, fortune favors the bold!

This makes it pretty clear that the market, that is the private profit driven system we have, actively discourages building more housing, keeping it affordable, historic preservation, environmental considerations, and hiring union or pervailing wage labor. While cities should remove or reduce parking mins, lot requirements, and so on, they also need to become their own developers building social and public housing locally. They, like the for-profit companies they do it instead, can then collect the rent as additional revenue streams instead of just taxes and fees to further support rehabilitation, planned future development, other city services, all while keeping thats far more affordable because the profit motive no longer exists. They are looking to maintain and help the community, not become Bill Gates.

I’m a big fan of your videos and love the nuances of the planning side of things. But as a land development engineer I find myself saying “but cities don’t typically build things” in response to a lot of your points (not as a criticism). I’m glad you’ve spent time to talk about the other side. The city sets the rules but the developers play the game and the engineer is their coach