Contractors Corner

Contractors Corner: How Design Can Guide Residential Developers Towards A Profitable Result

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REALIZE the Possibilities. DESIGN Your Reality. INFLUENCE Your Life & Community.


Recently, we were having a conversation with a Chicago housing developer, who is in the process of designing and constructing a large number of affordable single-family housing units on Chicago’s Southwest Side. This developer is utilizing the federal, state and local programs in place that encourage developers to construct affordable housing through tax credits and benefits. With this in mind, as well as, the neighborhood’s average purchase price per home, the developer has little margin for profit on each property – making design that much more critical.


Furthermore, the current market conditions dictate the cost of construction. Price of materials has sky-rocketed, and it’s important for the design to provide an accurate cost estimate for construction. This ensures that the project is not over-designed and complies with the stated budget and expected sale price.


So let’s bring this back to the idea of knowing the homebuyer and community when designing housing developments. Simply put, it’s not in the best interest of the developer to build a home for more than it will sell. Sounds easy, right? Not always. And when the difference between profit and loss is so miniscule, it is vital to have an architectural partner on your team with experience in both high-end housing developments and affordable multi and single-family housing units. This well-rounded design experience will provide the guidance and deep understanding necessary to avoid over-designing the home and result in an on-budget and profitable solution.


Bottom line: Knowing your homebuyers and communities will guide decision-making when determining the product to bring to market. The right architect will identify what to include within the design in order to develop a solution that meets the needs of the developer, market, community and homebuyer.

Background information: JP Architects, Ltd. has design experience with the first and third largest residential homebuilders in the United States and developers from the suburbs and City of Chicago. As a premier residential architectural firm, we specialize in designing functional, aesthetic and profitable housing developments. Our differentiator? We truly listen to our developer partners and apply market, community and homebuyer insights to conceptualize a viable design.


Did this article pique your interest? Let’s have a conversation — 708.907.3651


Until next time,

Jose R. Pareja, AIA



JP Architects, Ltd. was founded in 2015 by Jose R. Pareja, AIA. We specialize in and are passionate about residential design, commercial architecture and public sector planning / capital improvement projects. Located at 7250 College Dr., Palos Heights, IL 60463, we serve North and Central Illinois. We complete hundreds of projects per year and bring sound principles of design, resourcefulness, reliability, unmatched quality and enthusiasm to each project. JP Architects, Ltd. realizes the possibilities, designs your reality and influences your life and community.

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