Sacramento is seeing a surge in the construction of new apartment complexes, trying to keep up with rising demand.California and out-of-state developers call the Capital City a diverse market and housing experts say to bring it on. Scott Cooper, vice president for development for the Michaels Organization, said there are various economic drivers, from healthcare to manufacturing, to technology. He said Sacramento is the place to be.”It’s just been an economy and market that’s on the upswing and we are quite bullish on it,” Cooper said.Michaels Organizations has projects in 35 states. Right now it’s building an apartment complex with 187 units of studios and one and two bedrooms near the intersection of 3rd and T streets, which is near downtown Sacramento.”We are heavily ammenitized with a pool, spa, fitness co-working and sky lounge on the fifth floor overlooking downtown,” Cooper said.The California Apartment Association said there is an increase in new builds. “We see a lot of cranes and people think we are building a lot of housing, but it’s still not enough,” said CEO Tom Bannon.Bannon said new construction is the key to Sacramento’s housing shortage. He said the region needs 10,000 units a year to keep up with demand.”We need 8-to-10,000 units to just keep track with the people that are coming into the region,” Bannon said.This comes on the heels of Gov. Gavin Newsom signing two bills that his administration says will boost housing and create thousands of jobs. Both will allow for more affordable housing to be built in under-used commercial areas typically reserved for retail, office and parking. It’s part of the requirement California has for all governments to adequately plan to meet the housing needs of everyone in the community. For instance, Sacramento is required to create more than 45,000 new housing units by 2029. That breaks down to about 5,698 units a year that needs to be built. But Sacramento says the city only constructed an average of only 1,670 units a year from 2015 to 2021. Increasing overall housing production is a major goal of Sacramento as demand outpaces supply. Read Sacramento’s plan here.Bannon also said there are several complexes going up in downtown Sacramento, a place that hasn’t been as lively since the pandemic with state workers staying home.He hopes the apartment surge is the start of bringing the downtown core back to life.”The city of Sacramento recognizes that the construction of apartments is an economic engine,” Bannon said. “Businesses will be attracted to downtown Sacramento because where there are people, businesses will follow.”Cooper said more development is good for his business too.”In a market like Sacramento, it’s this idea that a rising tide lifts all ships,” he said. “If we can all develop quality products, it can lift the market up.”The development is expected to be ready in December 2023. Bannon said some complexes have provisions that allow for low to moderate-income families to move in.
Sacramento is seeing a surge in the construction of new apartment complexes, trying to keep up with rising demand.
California and out-of-state developers call the Capital City a diverse market and housing experts say to bring it on.
Scott Cooper, vice president for development for the Michaels Organization, said there are various economic drivers, from healthcare to manufacturing, to technology.
He said Sacramento is the place to be.
“It’s just been an economy and market that’s on the upswing and we are quite bullish on it,” Cooper said.
Michaels Organizations has projects in 35 states. Right now it’s building an apartment complex with 187 units of studios and one and two bedrooms near the intersection of 3rd and T streets, which is near downtown Sacramento.
“We are heavily ammenitized with a pool, spa, fitness co-working and sky lounge on the fifth floor overlooking downtown,” Cooper said.
The California Apartment Association said there is an increase in new builds.
“We see a lot of cranes and people think we are building a lot of housing, but it’s still not enough,” said CEO Tom Bannon.
Bannon said new construction is the key to Sacramento’s housing shortage. He said the region needs 10,000 units a year to keep up with demand.
“We need 8-to-10,000 units to just keep track with the people that are coming into the region,” Bannon said.
This comes on the heels of Gov. Gavin Newsom signing two bills that his administration says will boost housing and create thousands of jobs. Both will allow for more affordable housing to be built in under-used commercial areas typically reserved for retail, office and parking.
It’s part of the requirement California has for all governments to adequately plan to meet the housing needs of everyone in the community.
For instance, Sacramento is required to create more than 45,000 new housing units by 2029. That breaks down to about 5,698 units a year that needs to be built. But Sacramento says the city only constructed an average of only 1,670 units a year from 2015 to 2021.
Increasing overall housing production is a major goal of Sacramento as demand outpaces supply. Read Sacramento’s plan here.
Bannon also said there are several complexes going up in downtown Sacramento, a place that hasn’t been as lively since the pandemic with state workers staying home.
He hopes the apartment surge is the start of bringing the downtown core back to life.
“The city of Sacramento recognizes that the construction of apartments is an economic engine,” Bannon said. “Businesses will be attracted to downtown Sacramento because where there are people, businesses will follow.”
Cooper said more development is good for his business too.
“In a market like Sacramento, it’s this idea that a rising tide lifts all ships,” he said. “If we can all develop quality products, it can lift the market up.”
The development is expected to be ready in December 2023. Bannon said some complexes have provisions that allow for low to moderate-income families to move in.
Read More:More Sacramento apartments being developed, falls short of need
2022-09-30 02:51:00
