Kindred Construction Ltd.’s Post

The Only House-Building Debate Will Be 'How, Not If' As the Managing Director of One Way, a UK-based construction recruitment business established in January 2005, I've seen how housing prices and wages have changed. It's clear that while house prices have increased significantly, wages have struggled to keep pace. Here's a look at the data and current legislative changes: A Historical Perspective: 2005: The average house price was £157,000, and the minimum wage was £5.05 per hour. 2024: Today, the average house price is £281,373, and the minimum wage is £11.44 per hour. In 2005, it took about 14.94 years of minimum wage income to buy an average house; this improved to about 11.82 years; showing some improvement in housing affordability. Current Legislative Landscape: Today, Sir Keir Starmer has proposed significant changes to the planning system. His new Planning Bill will: Re-designate 'low quality' Green Belt areas as 'Grey Belt' for development. Reduce the ability of residents to block developments. Other key points from the King's Speech include: Establishing a state-owned energy company to boost green energy projects. Introducing electoral reforms, including votes at 16. Implement stricter measures for shoplifting and ban zombie knives. Banning no-fault evictions and addressing poor housing conditions. A Call to Action: The construction industry is poised for significant changes. These proposed reforms address the housing shortage and create new growth opportunities. Staying proactive and adaptable is crucial as we move forward, ensuring our workforce is ready for the future. Let's work together to build a better future where housing is accessible to everyone. #Construction #Housing #UKEconomy #PlanningReform #Growth #Sustainability #Recruitment #Leadership James Vincent Brad Strickland

I would not call this a "snag". This process is known as "negotiations". Labor union leaders are well aware that construction work for their members will mostly dry up within a year or so if there is no 421-a replacement program enacted in this session by the NY State Legislature. Newly issued building permits for buildings that are privately financed were down in 2023 by about 90% from the previous year. There was a spike in building permits at the end of 2023 for one to three family homes, because those were grandfathered for natural gas use. THE VACANCY RATE IN NYC IS NOW ABOUT 1.4%. The only game in town now for multi-family rental development is government subsidized projects which don't need 421-a exemptions because they are eligible under under other tax exemption programs like 420-c, 420-a or Article XI. However, government subsidies are stretched to the limit and cannot replace privately financed construction of multi-family rental buildings. Hopefully, progressive legislators will act reasonably this session and enact a 421-a replacement program. If not, we will be seeing massive unemployment in the construction industry, migration of developers to other states that are more friendly to development and even higher rental rates. #seidenschein #nyhousing #nychousing #nycrealestate #nyrealestate #taxincentives #421a #multifamilyhousing #multifamilyrealestate #multifamily #development #realestatedevelopment #inclusionaryhousing

The conversation about minimum wage being a fraction of the cost of living is critical, but we also need to examine Prevailing Wages for trades and industries like construction. Many #bluecollarindustries are seeing wages that, when adjusted for inflation and cost of living, are closer to minimum wage than a living wage. While I agree that minimum wage is where people often start, in many blue-collar jobs, the expectation is to learn on the job and advance, but this model is breaking down. The reality is, we have a massive labor shortage in industries like construction, and other blue collar, traditionally middle class work because the starting wages in these sectors are often uncompetitive to the starting wages in other sectors. Meanwhile, conglomerates offer entry-level wages and benefits that are far more attractive—even for jobs that don’t require a highly specific skill set. The result? Fewer people are entering manual labor and skilled trades, creating a pipeline issue that impacts everything from project timelines to the cost of goods. If we want to address these shortages, it starts with re-evaluating wages. A competitive Prevailing Wage that reflects the cost of living and incentivizes workers to enter (and stay in) these industries is key—not just for fairness, but for the future of our workforce. What does it say that conglomerates view paying their PR interns more than those who build the structures they use daily?

Following Labour's win at the General Election, our director Rob Poole shared his thoughts. "As we welcome the new Labour government, it is crucial to acknowledge the strides made and the challenges that lie ahead in the property management sector. The recent laws have alleviated some of the burdens on leaseholders, particularly with cladding issues post-Grenfell. However, the process of developer-funded remediation for mid- and high-rise buildings remains problematic. Despite the commitment of developers, the timeline for remediation is fraught with delays, impacting over 12,000 high-rise blocks across the UK. The new government must ensure that developers adhere to set timescales to prevent indefinite delays and ensure the safety of residents. "Developers often approach these remediation projects under public and shareholder pressure, which can lead to either rushed deadlines or cost-cutting measures that compromise safety. It is imperative that we avoid another race to the bottom, particularly in critical areas like fire safety. "Labour's manifesto commitments to leasehold reform, such as capping ground rents and gradually reducing them to a peppercorn, raise significant concerns. While intended to protect leaseholders, these measures could lead to unintended consequences, including increased costs for property management and a potential decline in the quality of service provided to residents. The focus should instead be on ensuring fair practices and reasonable costs without undermining the viability of property management services. We strongly urge the new Government to swiftly introduce regulations for Managing Agents to eliminate those who cut corners in their services to leaseholders, thereby improving standards and professionalism. "As these reforms progress, it is essential that a balanced approach is taken. Consultation with practitioners, leaseholders, and freeholders is necessary to ensure that changes are both fair and practical, addressing the needs of all stakeholders without compromising the integrity of the property management system." #glide #propertymanagement #generalelection2024 #labourparty

Common sense people need to start paying attention to the propaganda that has infiltrated our media. There’s an adage that you can make data say whatever you want it to say. That’s especially true for what media and politicians produce. Get smart and actually understand what is being written instead of reading headlines. All the data here is presumably true, it’s just how the data is used to create emotional and misleading headlines. Be smarter. Who can spot the misleading data in this post?

Topic: Affordable Housing Policy Reform - Commercial Prevailing Wage I serve on the AIA CA Housing Steering Committee alongside a group of architects that design housing in California. We regularly review and discuss potential solutions to increase housing production and make housing more affordable and attainable. I would like to gather input from those of you involved in building subsidized affordable housing. Spearheaded by Michael Malinowski FAIA and Brian Lane, FAIA, we are currently discussing a potential proposal to lower the cost of affordable housing by increasing the commercial prevailing wage threshold from 4 stories to 8 stories. The rationale behind this is that Type III podium construction has a height limit of 85 feet or 8 stories. Construction for buildings 4 stories or fewer would still require prevailing wage (union labor). However, construction up to 8 stories is typically performed by the same subcontractors. Once a project reaches high-rise status, it requires the next level of skilled labor, where "commercial prevailing wage" makes sense. I would like to hear from those in California's affordable housing development and construction sector on whether this adjustment could help reduce costs and boost housing production. Please share your stories and insights. #housingsolutions #affordablehousing

Did you know…🤔 That by working at minimum wage for $7.25/hr, each week you have to work 106 HOURS to afford a modest 1 bedroom rental home at Fair Market Rent.💰 This is why workforce development and the ability to make a life-sustaining wage is so important to all aspects of life, including safe, affordable housing.🏠 Source: National Low Income Housing Coalition

Bidding and working on prevailing wage projects can be a great strategy to grow your business. However, many companies avoid working on public works projects, thinking the administration and compliance factors will be too time-consuming. But partnering with a knowledgeable prevailing wage source, like Beneco, can help you navigate some of the uncertainty that contractors often feel when working on these projects. Read more on our Builders Blog. https://bit.ly/4dQ8eUL #PrevailingWage #PublicWorks #ConstructionIndustry #GovernmentContract #Infrastructure

Over the weekend, I engaged in a thought-provoking discussion with a real estate developer regarding the recent minimum wage increase in DC. They posted that the recent increase of minimum wage from $17 to $17.50 was basically the straw that broke the camel’s back in their real estate portfolio. Naturally, I responded as someone who fights against negative narratives in the housing and workforce ecosystems. Below are what I see as flaws (but consistent points about wage and housing) in their argument. I hope they are enlightening to you and if you’ve used this narrative in the past that you’re able to reassess: 1) Developers rarely pay minimum wage to their employees, so the wage increase would have minimal impact on their expenses. 2) The increase is 2.9% of the old minimum wage. You can increase rents of seniors and disabled residents in affordable buildings the same increase. EVERYONE else gets over a 4% increase. So revenues outpace the increase. 3) More income for workers means increased ability to pay rent, benefiting developers. 4) The $1,040 yearly increase from the wage hike is a modest amount that should not significantly impact developers, even if they employ 10 people at minimum wage. That’s $866 a month. If your project can’t survive that then there are bigger issues than minimum wage. Let's reassess the narrative surrounding minimum wage and its effects on the real estate industry. #MinimumWage #RealEstate #Workforce #HousingEcosystem #DC #Entrepreneurship #affordablehousing