SACRAMENTO, CA – The True Life Companies (TTLC) has recently closed on the sale of 69 homesites to KB Home in the community of Galt, CA, a southern suburb of Sacramento. KB Home, one of the country’s largest and most respected public home builders, plans to build much-needed attainable housing on the 16-acre parcel.
The building site, located just one quarter-mile from Highway 99, is adjacent to existing residential neighborhoods and was formerly used to grow corn in support of a dairy operation. Besides offering convenient access to local shopping, schools and recreation in Galt, the location is also well-situated for commuters to both the Sacramento and Stockton metropolitan areas.
“By obtaining approval from the City of Galt to downsize from lot sizes of 10,000 to 6,500 square feet, our team was able to deliver more home sites and reduce the associated per-lot cost,” said Aidan Barry, Senior Vice President of Development, TTLC. “This should directly translate into a more attainable price point for the new, single-family homes being demanded by today’s young and growing families.”
A primary factor driving the increase in home prices in California is the lack of new housing, which has reportedly led to the lowest rate of state population growth since records were first kept in 1900. These new home sites in Galt are expected to continue addressing the pent-up demand for new housing in both the greater Sacramento and Stockton areas.
As of April 2019, the Sacramento Association of Realtors® reported just 1.4 months of single-family housing inventory for sale, versus 4.2 months nationally. A six-month timeline is typically considered a balanced market. At the same time, the group reported a median single-family home sales price of $385,000, up 5.5 percent over the previous year, and 128 percent higher than the same month of 2012.
In San Joaquin County – which includes the Stockton area – the California Association of Realtors® reported just 3.0 months of single-family housing supply in April 2019. The median sales price was $375,000, which was essentially unchanged from the previous year, but also up 128 percent from the same month of 2012.
These new homesites will provide more than just new housing supply by adding to the tax base, and improving city services available to current and future residents. Those who prefer public transit will be able to commute to jobs between Galt and Sacramento with several options via South County Transit, while the nearby Lodi train station provides access to the entire Amtrak network.
According to Scott Clark, Chairman and CEO, TTLC, “The True Life Companies is continuing to invest in the Sacramento region to bring more housing to this under-served market, with over 700 future home sites in our pipeline. Our key focus is to convert obsolete or undeveloped property, or under-utilized commercial and industrial property, to residential uses for our builder partners such as KB Home.”
The True Life Companies is composed of a team of highly successful residential real estate professionals who work together with property owners, municipalities, and local stakeholders to address the need for attainable housing options in high-need communities. The company seeks to establish suburban and urban infill housing options that are the result of insightful research, innovative planning and creative collaboration. TTLC is headquartered in Denver, Colorado, with offices in Folsom, California; San Ramon, California; and Irvine, California.