We have to stop relying so much on the government and start relying on the community. And we really need to start building community-centric, self-sustaining housing and commercial venues that can withstand economic crises and housing slumps.
HUNTINGTON BEACH, Calif. (PRWEB) September 01, 2021
It’s beginning to look like 2007 in the housing market. According to online real estate company Zillow, home prices across the nation have spiked a record 13.2% when compared to last year. Austin, Texas leads the pack with an increase of 30.5% over 2020.(1) Meanwhile, construction for new homes fell 7% in July and construction starts for single-family homes fell 4.9% in the same period.(2) Plus, economists predict the US economy—which saw a spurt of growth in the second quarter of 2021—will hit a wall in the coming months.(3)
“These are not good signs for the real estate market,” warns Nick Saifan, Chairman of Vendaval Corp., who has a recession and real estate crash-proof project ready to begin in Southern California.
The housing market appears to be on a similar track to the horrific events of 2007 when the real estate collapse led to one of the greatest recessions in recent memory. While some argue tighter bank regulations will prevent a new housing collapse, others point to alarming data that warn of a coming storm in housing. As of mid-April, 2.2 million homeowners remain in the federal forbearance program. About 70 percent of those homeowners are not making any payments. Experts estimate that 3 percent of those in the program could end up in delinquency.(4) As of July 31, nearly 6.4 million tenants ascribed to renters’ forgiveness programs owed an estimated $21.3 billion.(5).
Vendaval plans to develop a wide-ranging housing, retail and commercial development in Moreno Valley that won’t fall apart if the housing market fails or if another recession hits the nation. The key involves creating self-sustaining, mixed-use communities. Saifan’s extensive history as a developer, and his ability to build at a discount will make the community self-sufficient. He says revenues generated from commercial and retail shops will offset expenses and allow for a self-sufficient community. In addition, funds from rents and retail will be set aside to provide for a wide range of programs for social, nonprofit educational and vocational training opportunities for locals.
Saifan has worked with community leaders in Moreno Valley to shape the plan to local needs. He’s avoiding government assistance so locals can control the cost of rents and determine how best to efficiently distribute the resources. He also plans to bring in nonprofit groups to help educate and train locals. He will also encourage rental and commercial businesses to hire within the Moreno Valley community and from within the project itself—and those firms who do will receive rent credits and incentives.
Vendaval hopes to build residential units and 30,000-square-feet of retail facilities. The development will be a source for community members to find jobs, homes, facilities, training, social programs, mentoring and a sense of place all in one location. The development, which has relied on local feedback and direction, will include parks as well as a new Boys and Girls Club—the first for the community.
California is often a barometer for the nation. What works in The Golden State can be a model for the nation to follow. Saifan says the Moreno Valley project will be a model for others to emulate. He plans to create seven to 10 community-based developments in California and will share his insights with anyone who wants to take the concept national.
“We have to stop relying so much on the government and start relying on the community. And we really need to start building community-centric, self-sustaining housing and commercial venues that can withstand economic crises and housing slumps. When you put the community first, everything else will fall into place,” says Saifan.
About Vendaval Corporation
Nick Saifan served in the U.S. military for 24 years, including time stationed in Riverside County, CA. He experienced firsthand the difficulties of transitioning from military life to civilian life and, as a co-founder of a community-based nonprofit, he watched the difficulty in getting donations increasing year by year. Today, he’s putting his business savvy where his heart is. He sees a community that, like many, has struggled to evolve with a changing employment picture in the region. Today Vendaval Corporation visualizes a sustainable business structure creating the opportunity for helping those in need with successful community-based programs. The differentiator in the communities he visualizes is self-sufficient affordable housing in a mixed-use development that offers on-site programs for veterans, youth, education, childcare, on-the-job training, and job placement. These programs begin even before ground is broken. Rounding out the community are retail outlets such as bakeries/coffee shops, dry cleaning shops, a paid-membership fitness center, and financial institution. For more information visit http://www.vendavalcorp.com/
1. Adamczyk, Alicia; “Typical Home Price Is Up a Record 13.2% Compared To Last Year, According To Zillow”; Last updated June; CNBC Make It: cnbc.com/2021/06/16/typical-us-home-price-up-record-13point2percent-compared-to-last-year
2. Crutsinger, Martin; “Housing Construction Slumps 7% in July to 1.53 million units”; Last updated August 2021; ABC News; abcnews.go.com/Business/wireStory/housing-construction-slumps-july-153-million-units-79517103
3. Cox, Jeff; “The Rapid Growth The US Economy Has Seen Is About To Hit A Wall” Last updated July 2021’; CNBC: cnbc.com/2021/07/23/the-rapid-growth-the-us-economy-has-seen-is-about-to-hit-a-wall
4. Kohler, Christine; “Most Homeowners Have Exited Mortgage Forbearance Programs, But Those Who Are Left Are The Most Vulnerable”; Last updated May 2021; CNBC: cnbc.com/2021/05/21/most-homeowners-have-ended-forbearance-but-those-left-are-vulnerable
5. Berman, Jillian; “The looming $21.3 billion in debt that could cost Americans their home”; Last Updated 31 July 2021; MarketWatch; marketwatch.com/story/the-looming-21-3-billion-in-debt-that-could-cost-americans-their-homes-11627595698