John O’Donnell CEO The Michaels Organization
What makes Camden a great location for the company’s headquarters? We were looking for a new place to relocate to because we had outgrown our former headquarters in Marlton. We saw how close the area is to Philly and the suburbs as well. We’ve been doing housing in Camden for over 20 years, so we thought it would be ideal to get involved in the resurgence and renaissance of Camden and make a difference. It’s a great message to the rest of our teammates around the country about how we get involved in the community and with residents. What do you consider the most affected part of your business during the last year? The biggest loss during the pandemic was the collaboration between the government agencies, residents and developers. That collaboration is key and we’re still trying to recover and rebuild that teamwork. What challenges will residents in affordable housing face as government aid dries up? I think the best program is a job. Coming out of this pandemic, where the jobs are being created will be important, along with how we support local businesses. It’s important to promote local job fairs, not just for temporary jobs but permanent jobs, while also creating training programs to give people opportunity and hope. Also, we need to pay attention to education because last year was very challenging for our young people and the schools. What is your two-year outlook for the residential market in South Jersey? The outlook goes hand in hand with construction costs. The more that costs come down, the more we can do with construction projects. It’s going to continue to grow, it’s going to continue to get better, no doubt. It’s all about jobs. If we can support local businesses and create new businesses, it’s going to be positive moving forward. 72
| Invest: South Jersey 2021 | REAL ESTATE & CONSTRUCTION
Median prices for single-family homes stood at $265,000 in May 2021, up 20.5% Y/Y A key factor professionals and consumers are watching closely is the meteoric rise in the cost of construction material. Lumber prices, for example, shot up more than 300% between April 2020 to May of 2021, causing the average home price to increase by approximately $36,000, according to the National Home Builders Association. Despite the current challenges facing the construction industry, over 3,500 privately-owned residential building permits were authorized throughout the state in April 2021 with approximately 770 residential construction starts happening in South Jersey, according to the state’s Department of Labor and Workforce Development, highlighting continued demand for housing in the state and local market. New Industries The South Jersey market is ripe to lead the state in growing industries, such as the cannabis and wind energy sectors, sparking new development and construction projects in the process. This year, New Jersey became one of the latest states across the country to legalize cannabis for recreational consumption, joining the likes of Maine and Massachusetts in the Northeast market. As such, a cannabis real estate boom may be in the cards for South Jersey depending on individual municipal structures. The global legal cannabis industry is projected to hit $40.6 billion in global spending by 2024, which will be a 300% increase from 2019, according to a report from Arcview Market Research & BDS Analytics. Currently, municipalities across the state are in the process of creating and adopting a local enforcement structure regarding the use and sale of cannabis. Though the cannabis industry has faced resistance from local governing bodies, the industry has seen key wins in the South Jersey market. Atlantic City is expected to employ a more open approach to this ( )
