As prices increase at a rate much higher than we’ve ever experienced you might expect that residential construction, home renovations and remodeling might take a back seat and begin to slow. Although, this is partly true there is something else we are beginning to hear from our clients. Homeowners are recognizing that putting their savings into their home is one way of protecting their assets from a bearish market. They seem to be trusting the stability of their home value over stocks, bonds and other investments more and more. Of course, this is not the only motivating factor. Most of our clients have a primary goal of enlarging their home for needed space or returning parents to the safety of the family home. ​

​It is, however, noteworthy that during the recession that hit in 2008 we experienced the same hesitation by homeowners to launch larger projects. Since loft additions and other high ceiling conversion projects are smaller investments that gain square footage quickly we continued to grow through 2009 to 2012 while other categories of construction were in decline. Then between 2013 and 2016 we experienced a noticeable increase in new projects due to what we feel was pent up demand. 2017-2020 were growth years due to a health economy. We are merely sharing our experience in the California market. Our conclusions are not based on any statewide or official market data, but on our direct experiences in serving homeowners, home buyers, remodelers, and general contractors.

As we enter into 2023 the future may have a higher level of uncertainty once again, but one thing is for sure; people still have growing families, they still want to bring parents and loved ones closer to home when the time calls, and we are still being asked to prepare architect and engineer plans for their home improvement projects.
 
Get Informed
Being informed is always a good thing. Whether you are considering a home renovation, remodel or room addition now or sometime in the future, getting a planning estimate is always the first step. We can also help you get construction quotes by licensed general contractors as well.

Courtyard by Marriott
​Orange County, California

On Wednesday July 20, 2002 TRUPLANS INC hosted the first Executive Vision Luncheon for industry professionals to review the expansion plans for TRULOFT (loft addition) markets as well as the new TRUSPEC-ADU brand of pre-spec accessory dwelling units.

Keynote speaker, Chris Doering, CEO of TRUPLANS INC, presents the corporate branding strategy for expanding the loft addition niche services across the entire state of California. In attendance are industry professionals, engineers, designers, general contractors, vendors and real estate agents/brokers from 12 different corporations. 

If you’re a homeowner looking to create a separate space from your home for a mother-in-law
suite, workspace, or rental opportunity, building an accessory dwelling unit, or ADU, may be the
perfect option. The potential uses and benefits of an ADU are endless, but building one can be
difficult with every city having its own zoning restrictions, HOA regulations, and building laws.
Laws surrounding ADUs from San Francisco, CA are completely different from the laws in
Providence, RI.

To give you some clarity, we asked ADU experts to share their best tips and tricks that will help
you successfully build an ADU. Keep reading to see what they had to say.
​
1) Make sure your property is suitable for an ADU
In addition to ensuring your ADU design can be built within your budget, you also need to
ensure your property is suitable for the ADU. The first step in determining where the ADU can
be built is to understand local ADU regulations, including setbacks, zoning, and HOA
requirements. Work with an experienced contractor to understand what will be required to
create a "buildable pad" for your ADU, as these site work costs are the most variable element of
the construction project. - Snap ADU

2) Build on your own property
If you already own the property, the land is already priced in. Meaning, if you were looking for an
investment property (like a lot to build multifamily or finished units on) you would have to pay a
premium for the land by itself. Land in central Oregon and in all different parts of the country is
at an all-time high. So why not invest in building an ADU on land you already own? Building an
ADU on your own property can give you more bang for your buck. - ADU Advice

3) Hire professional help
It can be chilling to start the process of building an ADU. It’s always better to hire local experts
to plan and build your ADU. This goes for architects, contractors, designers, and real estate
agents. Make sure you find a local contractor who specializes in accessory dwelling units. -
ADU Insider

4) Utilize standardized plans
In addition to prefab or custom ADU options, there is a third overlooked technique known as
pre-spec. It stands for pre-specified which gives you some of the prefab benefits in planning,
selection, and cost savings, yet it is still customizable to satisfy differing city requirements and
HOA guidelines. Similar to the way tract homes are packaged and standardized, pre-spec ADUs
can offer a variety of elevation options for adapting to the architecture of an existing
residence/community. - TruPlans ADU
 
5) Consider building an attached ADU
Many people think of ADUs as separate detached units or garage conversions, but ADUs can
also be attached to a home or existing garage. This option preserves yard space, allows for
more square footage, and eliminates the cost of solar, which is required for most detached
ADUs in California. - Superior ADUs

6) Calculate your potential ROI
One of the most compelling pros of owning and renting out an ADU is having a portion of your
mortgage covered by a renter, yet retaining the capital appreciation that makes this a tax-
efficient investment, all while increasing the housing supply. I founded ADUROI to help others
evaluate the potential return on investment when adding an ADU. For example: In 2018, if I paid
$730k for a single-family home, invested an additional $130k to convert the garage into an ADU
then as of today, the rent from the ADU generated a 51% ROI. - ADUROI

7) Save money with a panelized ADU builder
ADUs don’t have to cost an arm and a leg. Between choosing an architect, contractors,
financing, drafting plan sets, and securing permits - it adds up fast. You could pay half the cost
of a traditional stick-built ADU by hiring a panelized ADU builder. Your ADU will look like your
primary home, quality will be high, and the ADU could be completed on-site in 30 days. -
Conrad Kimball, Co-Founder of ADU Works

8) Check if your state has ADU design restrictions
Because ADUs are based on California state law, local jurisdictions are limited in their ability to
require design review for these projects as compared to any other project type. As long as the
structure is no taller than the existing main house and is generally similar in style and material to
the existing structure, months of design review hearings and costs associated with that effort
are saved. To understand how this applies to your particular project, feel free to get in touch. -
Bildsten Architecture and Planning Inc.

9) Do your research and ask yourself important questions
Make sure there are no pending liens or pre-sale inspection steps you missed during escrow. If
you miss things, you can probably still build an ADU or convert existing space into an ADU, but
it may require that you move on the city's timeline which may be faster or slower than you had
anticipated. When converting existing space into an ADU, check permits to see if the space is
already legal or not. It may be legal when it comes to square footage, but not legal to be used
as a living space. Checking permits will allow you to finish the project quicker and may lead to a
lower total cost. Finally, always analyze the cost-benefit before you start. Ask yourself questions
like, what is the total payment of all cash used to create ADU vs estimated monthly rent? Am I
cash flow positive? Is that cash flow worth it to me to lose privacy and parking? How long will it
take to recoup my investment? Could investing funds in a different project give me better
returns? These are all important questions to ask before you decide to build an ADU. - IET Real
Estate

10) Evaluate the pros of building an ADU
Building an ADU is one of the smartest business decisions a homeowner can make. If the ADU
is built for a loved one with special needs, they are a much less expensive alternative to a care
facility. Alternatively, several clients have been able to pay for their ADU or backyard home and
their mortgage with the additional income generated by renting their ADU. - CA Backyard
Homes
 
11) Decide whether to build an ADU or buy an existing one
We recommend you purchase a home that has the option of building an ADU. Building an ADU
can cost anywhere from $80k to $200k. But if you factor in the rents you will get, the payoff is
amazing and can pay for itself in 5-10 years, depending on your rents. Keen on buying an
existing ADU? Do it, it will assist you to open the doors to spend a little more money on a home
and have the cushion of added rents to cover your mortgage. Both options are a win-win. -
Monique Carrabba Carrabba Group | Compass Beverly Hills

12) Experience vs. experiment
Many builds using a variety of prefab methods have taught me that making all the decisions
upfront makes the cost to build very predictable such that the contract price is the actual price.
Experience is necessary to see all the items needed on the front end. While this may not give
you the best quote price, an experienced builder can validate that price through previous clients.
Great solutions come from companies with a range of products that fit every size, need, and
price range - from full builds to some DIY options. - prefab ADU

13) Be thoughtful with design
ADUs make a great space for an in-law suite for aging parents by providing privacy, more
independent living, and more space, all while keeping those you love close by. Make sure your
design consideration allows for graceful aging - larger doorways for easier movement, curbless
showers for ease of use, and induction cooktops for safe cooking. - Third Street Architecture

14) Have your septic system checked
Your current septic system may not be able to handle the increase in discharge from your new
ADU. It’s best to have a professional from your county’s health department check your existing
system to understand if it can handle the ADU or if a new unit is required. If a new unit is
required, it may be different from your existing system as regulations often change and become
more stringent - Acuantia

Originally published on Redfin.com

As a planning company with anywhere from 30-50 projects in our pipeline at any given time, we have a pretty good pulse on the heartbeat, or flatline, in the market. Right now there is no flat line. These are our observations from a planning and construction point of view.

Bullet Point Briefs;

• SUPPLY - One of our contractors today just ordered La Cantina brand doors for a client in Orange County. Pretty standard stuff. This is January 24th and the doors are expected to be delivered October 22, 2022. Read on and find out why.
  
  
• FIAT CURRENCY - Inflation keeps driving costs up and up and up. Yet people are still wanting to build. The reason we are hearing is that they want to protect their assets inside their own home. I call this building a big home "safe". In the end will this weather the economic woes ahead? It depends on who's in charge of the currency in the coming years. With Feds raising the rates things are only going to get worse.
  
  
• HOUSING DEMAND - Today, a homeowner with an approved permit told me he wanted to expand his addition to include yet another room addition and bathroom. Why? Because he was trying to buy another home, but even offering 20% over the listed price on five homes he can't buy anything. Someone else was offer 30% over listed price. His solution, put the investment into the home he is living is now. This is his conclusion even knowing, that materials are taking a long time to get. Even getting a contractor to come out and visit your property has become a challenge, he said.
  
  

Our opinion and observation draws two very clear conclusions;
​

1. IT'S POLITICAL - The supply chain issues have NOTHING TO DO WITH COVID, but that is a very convenient cover story.  It is actually due to Governor Newsome's increased EPA standards that restrict half the trucks in the U.S. from operating in California. They can't clear the ports of the shipping containers. If your trucking company doesn't meet the new standards you will receive a hefty fine. Like $400,000. Business friendly? Not at all. The governor won't temporarily waive or delay the EPA law so that the docks can be cleared allowing for ships sitting out in the harbor to unload their goods. Even the train systems are over loaded. Looting of trains sitting in Yorba Linda, California because there is no room on the tracks is a regular occurance...a direct result of a twisted political agenda that has nothing to do with protecting the environment, but flexing globalist authority over California that all must comply with the green new deal. 
   
   
2. Inflation: Don't get me going! The Feds are NOT really federal bankers. It's a private banking system, The Western Central Bank and it's at the end of it's 70 year cycle. Watch for more interest rate hikes and their push to introduce their own digital currency while they bad mouth all other alternate forms of currency. The U.S. has lived through the tyranny of three central banks and it always ends the same. They are globalist bankers hell bent on milking the U.S. economy as their fiat currency loses values. It's not really because materials COST MORE, It actually costs less to make materials, it's because their fiat dollar which isn't tied to anything like gold or silver is deflating and losing value. Homeowners are figuring this out. Yet, In the face of inflation, many homeowners are still looking for a place to protect their assets. Our business continues to boom because that place is in the structure of their expanded home. 

San Clemente, California
Orange County Room Additions
​
Garage Conversion in San Clemente showing the outside look of the conversion. Garage door replaced with windows and new header height to match existing home.

Yorba Linda, California
Room additions and Home Remodeling

If you have a pool that is used frequently by your family and guests this outdoor bathroom (accessible from outside only) is a way to divert the wet foot traffic into your house. This pool bath with shower and inside/outside shower heads should at least be on your wish list.

Yorba Linda, California
Orange County Patio Cover

Outdoor kitchen, patio cover, teppan-yaki grill, beautiful counter tops, covered roof with outdoor area heaters. This is a perfect outdoor space for family gatherings while keeping the cooking outside.

Mission Viejo, California
Orange Country Room Additions

This is a rear two story room addition with master bedroom seating area above and outdoor loggia space below.
Seating area has glass down to the floor. The California room below is outdoor living space with decorative wall insets in the stucco wall.

​Buying a new home and moving for this reason alone might not be in your best interest. What if you don’t want to move? Perhaps you love your home, your neighborhood and your school district. If you don’t want to go through the hassle of selling your home and buying a new one then open concept remodeling is probably your best option.
 
As you interview contractors for the job you might find that some will scratch their heads and wonder how it can be done. After all, the vast majority of their contracting career may have been building additions outside the footprint of the home. When it comes to structural retro-fitting they might recommend getting a set of plans with engineering first. That’s where we come in.

​Truplans Inc prepares the plans for awesome open concept living spaces. We have a substantial amount of experience designing open floor plans and removing structural walls.
 
Get all the contractors quoting from the same page. Let Truplans Inc design it in 3D and prepare the retrofitting plans with our experienced engineers.
 

California Market - Construction Estimates

Protect Your Money - Invest In Your Home

You might think that homeowners would stop or delay their home improvement projects due to this current period of inflation. Indeed, if everyone believed what the Fed told us earlier, that inflation was transitory, they would simply wait for inflation to taper off.  However, the Fed just announced what most of us already knew. Inflation is going to continue. This is because the value of the Central Bank’s U.S. fiat currency is on a long-term decline. They don’t want to come out and tell you that, but this is why they keep moving the goal post.
 
Stopping or delaying home improvement plans might be the knee-jerk reaction in the short term, but savvy homeowners are telling us that they want to proceed with their design and construction plans. Their resolve is with even more urgency. Why? As one homeowner put it, “I want to put my money into my home, it’s better than letting it sit in the bank and decline in value.”
 
Your home is your shelter in more ways than just a roof over your head. Although, property values can also decline many feel it’s a more secure way to protect their money these days. If you need the additional living space it makes more sense than ever.
 
Truplans Inc will continue to help homeowners get the best bang for their construction buck. This is especially important in these days of inflation and supply chain issues.

Disclaimer - Truplans Inc is not a financial investment firm. These blog articles are the opinion of the executives only. Always seek advice from a qualified financial planner when making investment decisions.