Jon Grauman

There's no question that affordable housing is, I think, at the core of a lot of these conversations. And that just goes into building costs, right? You got a lot of developers out there, particularly in LA, and that's my markets. That's all I can really speak to intelligently.

There's no question that affordable housing is, I think, at the core of a lot of these conversations. And that just goes into building costs, right? You got a lot of developers out there, particularly in LA, and that's my markets. That's all I can really speak to intelligently.

that have moved away from luxury spec homes because there's less demand and not as active of a market for it, and really moved towards trying to crack the code on affordable housing. But it's a tough code to crack, going back to all the things that we just said. The cost of debt has gone up, right? More than double from where it was a couple of years ago.

that have moved away from luxury spec homes because there's less demand and not as active of a market for it, and really moved towards trying to crack the code on affordable housing. But it's a tough code to crack, going back to all the things that we just said. The cost of debt has gone up, right? More than double from where it was a couple of years ago.

that have moved away from luxury spec homes because there's less demand and not as active of a market for it, and really moved towards trying to crack the code on affordable housing. But it's a tough code to crack, going back to all the things that we just said. The cost of debt has gone up, right? More than double from where it was a couple of years ago.

The cost of labor went up, the cost of materials went up. but the cost of land or property values have more or less stabilized. So there's been no adjustment for it, which means that it's really hard for these deals to pencil.

The cost of labor went up, the cost of materials went up. but the cost of land or property values have more or less stabilized. So there's been no adjustment for it, which means that it's really hard for these deals to pencil.

The cost of labor went up, the cost of materials went up. but the cost of land or property values have more or less stabilized. So there's been no adjustment for it, which means that it's really hard for these deals to pencil.

Now, the government, at least here in Los Angeles and California, and I imagine several other markets around the country, are offering tremendous incentives to contractors and builders that are willing to do affordable housing. It's just a question of how do you do it? So I think what you're going to see is a pretty big shift over to modular homes.

Now, the government, at least here in Los Angeles and California, and I imagine several other markets around the country, are offering tremendous incentives to contractors and builders that are willing to do affordable housing. It's just a question of how do you do it? So I think what you're going to see is a pretty big shift over to modular homes.

Now, the government, at least here in Los Angeles and California, and I imagine several other markets around the country, are offering tremendous incentives to contractors and builders that are willing to do affordable housing. It's just a question of how do you do it? So I think what you're going to see is a pretty big shift over to modular homes.

Modular homes, which always had a sort of negative outlook stigma and connotation of like a mobile home. It's not the same. A modular home is a home that is constructed prefab.

Modular homes, which always had a sort of negative outlook stigma and connotation of like a mobile home. It's not the same. A modular home is a home that is constructed prefab.

Modular homes, which always had a sort of negative outlook stigma and connotation of like a mobile home. It's not the same. A modular home is a home that is constructed prefab.

Let's say it's a little bit better than that. Again, like there's, you know, varying versions of everything. But I have a lot of clients that have, you know, gone headfirst into this because if you look at it, first of all, it's a more efficient way to build a house. You don't have an inspector that's going to come out 18 different times throughout the construction process.

Let's say it's a little bit better than that. Again, like there's, you know, varying versions of everything. But I have a lot of clients that have, you know, gone headfirst into this because if you look at it, first of all, it's a more efficient way to build a house. You don't have an inspector that's going to come out 18 different times throughout the construction process.

Let's say it's a little bit better than that. Again, like there's, you know, varying versions of everything. But I have a lot of clients that have, you know, gone headfirst into this because if you look at it, first of all, it's a more efficient way to build a house. You don't have an inspector that's going to come out 18 different times throughout the construction process.

You have an inspector that comes to the factory once. They inspect it. They sign off on it. Great. Let's manufacture a thousand of them. They are fire resistant. They are wind resistant up to 180 miles an hour. So they can do much better in the face of a hurricane or a tornado. They do have their limitations, right?

You have an inspector that comes to the factory once. They inspect it. They sign off on it. Great. Let's manufacture a thousand of them. They are fire resistant. They are wind resistant up to 180 miles an hour. So they can do much better in the face of a hurricane or a tornado. They do have their limitations, right?

You have an inspector that comes to the factory once. They inspect it. They sign off on it. Great. Let's manufacture a thousand of them. They are fire resistant. They are wind resistant up to 180 miles an hour. So they can do much better in the face of a hurricane or a tornado. They do have their limitations, right?