CONSTRUCTION BOOM, LABOR SHORTAGES AND ECONOMICS


WHAT DOES THIS MEAN FOR MY HOA? By Regan Brown


elected Governor, Gavin Newsome, promising to try to help solve the affordable housing issue. Developers are building again, so why is there a shortage? Te problem is the result of the economy boom itself! Unemployment is at an all-time low, and the skilled construction labor force has virtually disappeared. Tere simply are not enough employees to do the work.


T 14  Te Common


Interest Development industry, often commonly referred to as CID, has improved the speed in which developers can build housing, by deflecting many of the community costs onto the associations, so it has shown continued growth with no sign of slowing.


In 1970


he Housing shortage plaguing California has been brought to the forefront with our newly


there were approximately 10,000 Common Interest Developments. By the end of 2017, 347,000 were reported, with roughly 69 Million people living in some form of a Homeowner’s Association (HOA).


All states have shown increases in CID’s, but Texas, Florida and California lead the way with the majority of HOA’s. Tis development growth has been in sharp contrast to the slow decline of General Contractors holding ”B” Licenses, a shrinking workforce and a significant increase in labor costs, which has created an overall slowing of ALL construction related work. In 2008 when the bubble burst, we saw a substantial number of employees leave the construction related work force for other fields. Now we are facing a different type of attrition;


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