Single family home construction has been trending for years in Napa until recently where pent up demand is now driving a number of new projects including house and land that sells for more than $1 million. According to Paul Lucatuorto of Presidio Residential Capital, Napa does not have enough housing but positive economic growth, increased employment opportunities and steadily increasing home prices since 2011 have increased the demand. Because of the limited supply, sales prices for home and land are rising.
According to research, about 1,000 new residents move to Napa County annually but less than 200 building permit are issued every year. The demand for housing is due in part to the lack of new homes. In fact, housing inventory in the market is less than two months’ worth. In a typical market, housing inventory is usually 4 months.
New projects in Napa are an indication of a healthy real estate market. Builders have started to realize that they can make money on house and land packages in Napa. Presidio Residential Capital in San Diego and Lafferty Communities of San Ramon has received approval to build a collection of 18 expensive luxury homes along Orchard Avenue in Northwest Napa called Brioso. The Brioso project will offer luxury homes for about $1 million.
Brioso will offer several different home plans on lots that have a median size of about 13,466 square feet. The single story homes will include luxurious features like private wine tasting rooms, vaulted ceilings and spa-style master bedrooms. Sizes of homes will range from 2,600 to 4,500 square feet. The company has chosen to invest in Napa because of its location with great views of Mayacamas Hills and the vineyards. The vineyards and the hills will be a good combination for a residential project.
Castle Companies of San Ramon has submitted a tentative map for 12 single-family homes along West Pueblo Drive and Morlan Drive in West Napa. The project will be called Pueblo Ranch Estates. The 12 homes of Pueblo Ranch Estates will sell for an average of $600,000. The size of each home will range from 2,200 square feet to 2,900 square feet with about 3 to 5 bedrooms.