Until recently, Chicago custom builders struggled as prospects dragged their feet during the long recovery. Now, lower land and material costs along with a competitive labor market put the custom sector in a favorable purchasing position—providing they regain confidence in the overall housing market.
“The economic pressures have added up at the doorsteps of the high-end market,” says Keith Dinehart, vice president of business development at Goldberg General Contracting (GGC) in Chicago. “With higher net worth, assets, and far more liquidity, [they] are active in new construction,” he notes, but are more cautious about risk and diligent about pushing for bargain prices. GGC, which survived the downturn with a few 18- to 24-month builds and a docket of 60 percent new construction and 40 percent remodeling, is ready for the market’s return so it can resume building its trademark, architect-designed homes.
The area’s core characteristics—a diverse economy and proximity to a large metro area—have helped steady the urban and suburban custom markets, and pent-up demand compounded by older housing stock and few vacant properties means the tear-down and remodeling markets could take off. “People love new, but in the last few years there were no products available and buyers were hesitant to build custom during the uncertain times,”says Michael Berke, president of Chicago’s Berke Homes. Now, the suburbs and city are “somewhat active,” which is promising.
