The untold story of the current real estate crisis …Shoddy construction.

I don't think we want to go back to the good ol days of lead based paint, asbestos, single pane windows, galvanized steel pipe, 60 amp electrical service, 2-prong electrical receptacles, cracked plaster, wood shingles, bricktex siding and 70% efficient furnaces.

Do you know why your post is so great? Because it is so true!

Years ago builders knew to build a home at least 5 feet off the ground if near a river or a place that flooded every now and then.

I am still a believer that a home built on pier and beam is better than a concrete slab. Any Texan or people living on Gumbo dirt will attest to that. And yes a fire place is necessary if the electricity goes out. Wide hall ways are better accessible if you need a wheel chair or to gurney someone out of your home.

And what ever happened to all homes having a 12 x 11 restroom? I guess I just love older homes. And if stuff hits the fan in 2012 well then maybe someone will be ready.

Richard,

As you point out, many of the homes built during the bubble were not built to last.  Actually, 30 years is about right for an average life of today's new home.  We believe that will change - for the better.  One of the benefactors of lower prices should be a larger pool of new construction buyers.  Those buyers should demand better design, materials and construction.

Only time will tell.  But, if consumers demand a better product - the contractors will supply it.  The technology is available.  Hopefully, we will begin to see smart, efficient and a more enduring housing stock.

Richard: One of the points I made in a recent post of mine about "New Builds" is just that: they are meant to blend with and exist alongside the historical masterpieces here in Southampton. I have found that as the construction unfolds I am seeing that the houses that sell for almost full asking prices are the brand new houses with the custom treatments of their buyers and their own designer/architects....This means from the studs out, those new builds are being constructed to withstand ALL possible destructive events---from wind to water to earthquakes!!!....no spec houses these!!! Terrific post---good luck for 2011!!!

Hi Richard!
...and yet another reason that I am glad I specialize in older classic neighborhoods!  I couldn't agree more with you.  The areas around Sacramento that are still suffering foreclosures were all built in the last decade.  They are production homes, put up as quickly as possible to fulfill what was then a huge demand, and were not built to last.  It is a sad commentary on newer developments.

Congrats on the gold star, love the beauty of the architecture of the homes.  I have found that homes with functional obsolescence but has the old charm has some forgiveness for the deficiency.  It is the newer construction like you discussed that the flaws are a value killer. 

I'm no builder, but I remember doing some research on homebuilding and found the Swedes were using a special mix of concrete that made it lighter, yet very strong... poured the foundation and the walls and tilted them up. They used a lot less wood, but what they did with beams, cabinetry, doors etc. was beautiful. It also had a greenhouse as a major part of its roof, and solar power. 

Seems like cheap and fast rule and extras are expensive teasers (that is unless it's custom). Granite counter tops go only so far if the house is built crappy.

What I see in most construction today is the philosophy of get in, get it done and move onto the next one. The suppliers are also accommodating this faster and cheaper ethic as well.

Richard,

There are many days when I'd gladly swap back my 1800s home for the quality new-construction in which I had previously lived! But I too have seen many new homes held together by spit and chewing gum.

Very true Richard. Shoddy construction is a problem everywhere. And I am with you that pre WWII stuff is often built to last far better than some-not all- but some- recent builds. 

When the rules get tougher.. .the builders goals is to just meet them. . before it was much different 

Hello Richard and thanks for getting this interesting post out to us today.

I LOVE older homes, I was brought up in one, Salem MA very near where the witches were hung, great big wonderful old historic homes there. I miss being in one.  They truly are beautiful.

Patricia/Seacoast NH & ME

Good post and comments.

As an inspector I’ve often heard "I don't need to get an inspection, it’s a new house." Big mistake, most often made by young couples.  New construction is where the biggest problems exist. The problem is not 'glue verses wood' or any other technological innovations. Each technology selected is a working durable system and as long as it is fully implemented and integrated into the home construction its' fine.  The knowledge is there.

The problem arises from lack of supervision both in the architectural decision stages and the on site management.  It used to be the norm that a building was erected by a general contractor who put a full time supervisor on site and directly hired (on payroll) all the required manpower and tradesmen.  Only materials suppliers were subcontractors.

Now there are no general contractors like that, they are project managers, and everyone working on the building is a subcontractor.  So there is no supervision, or very little, and no one has detailed responsibility for any given building.  Developers are often the project managers themselves and are having many sections of a development or series of condo structures being erected at one time.  Typically they are concerned with managing contracts, controlling costs, and making sales at the same time.

New builds” are not automatically inferior.  As a matter of fact all eras had similar standards problems (or lack of), poor workmanship and rushed construction concerns.  Those buildings either got replaced or corrected over time, so now all the ‘old’ ones are ‘good’ ones.

Just like antique furniture, the well crafted and well maintained remain.  The substandard got renovated or replaced.  There are relatively few ‘dogs’ around and even they are usually modernized, at least in part.

There are lots of houses build before the Civil War (and WW1, WW2, etc.) that are no longer seen.  Some are gone because of fires and random acts of nature but many because they weren’t as well built as the ones that do remain.

That doesn’t meant that new houses are categorically ‘ not as good’.  They just don’t have enough history yet.

My comment here has developed into a full article, posted today on my Active Rain blog. Please refer to it for more details and examples as well as some of the issues surrounding this topic.

Turns out i had a bit to say. RB

The other side of "they don't make 'em like they used to" is that in the old days, labor was paid poorly, and therefore was more affordable to pay attention to construction details.

While I agree with Mike (post #9) when he said "The reason you see less junk from 100+ years ago is because much of those generations' junk has been fixed or has collapsed, burned down, etc."  I also note that the National Association of Home Builders predicts the life expectancy of Oriented Strand Board (OSB) the common wall and roof sheathing used today, at only 30 years.

You have a point.  Think back to the fifties and sixties when all brick homes with hardwood floors was the norm even in little ranchers.  Now we see homes where only the front is brick and only a few rooms have hardwood. 

Richard...I think you've hit the nail on the head.  I too live in an area of historical homes. Many times buyers are concerned about buying a 100 year old home.  Most of these homes have great bones and will last for many years to come.  Not so sure about those that were built in the last 20 years.

Richard ... I might have not been on this band-wagon and willing to agree with you ... but for the last two years the vast majority of our REO listings have been homes build in the last 5 years.  The "deferred" maintenance issues ... are more frequently poorly constructed issues that have resulted in problems quickly.  I also have noted, that many of the builders did not place "structural" insurance programs into the initial purchase prices ... hmmm ... wonder why?

Richard, there has already been a tract home development bulldozed in California of houses partially built because it was determined the land was more valuable than the houses. That speaks volumes about the worth of modern day construction.

Also, the houses in Key West have withstood multitudes of hurricanes - they were built like ships and can take the ebb and flow of wind and rain. Can you imagine a tract housing subdivision perched on the shores of Key West?