December 8, 2007: Morrison Homes Central Valley
Phil Bodem, Morrison Homes Central Valley
By Linnea Smith Jessup
As does every good captain, Phil Bodem, president of Morrison Homes’ Central Valley division, stays focused not only on the horizon, but the crew, the passengers and the vessel itself. With quiet intensity, Bodem charts the company’s progress.
“We constantly evaluate who we want to serve and where we’ll build,” says Bodem, who started with Morrison Homes in 1990 in the Central valley, and has served as division president for the past five years. “My main responsibility is to set the vision of our business.”
With 11 active communities in the counties of Stanislaus, San Joaquin and Merced, the company provides homes for two kinds of buyers – locals and commuters. Bodem says it’s a challenge to provide attractive, competitively priced housing for commuters with high-paying jobs as well as the local workforce for whom affordability is a prime concern.
“People make fun of the Central Valley but it has so much to offer – it’s close to beautiful and interesting places (Yosemite and other natural attractions) and it’s a great place to raise a family,” says Bodem, citing traditional values and affordable housing.
“We always keep in mind the idea that we’re serving families,” he adds.
Bodem is keenly aware that the traditional model of the family is changing, thus altering his company’s vision for providing housing to this market.
“It’s not just mom and dad and two kids anymore, it’s blended families, extended families and three generations” under one roof.
Another change: Two years ago commuters were willing to drive further, but that’s changing due to fuel prices and drive times. The economic climate has changed too.
“Two years ago our average home price was $450,000; now it’s $380,000,” says Bodem. “This shows a shift of where [and to whom] we’re focusing as well as [defines] the overall market. We’re trying to be more affordable to our pool of buyers.”
He notes one trend he’s seeing in the Central Valley is the need for more affordable houses on smaller lots.
“The backyard may be smaller, but that makes the cost of the home more affordable, and then we can offer a park or a tot lot. Amenities (such as a park) in a community help sell a home, but the communities will be denser.”
Bodem admits that it’s difficult to steer a course that combines upscale style and design features with quality and price. As a builder, costs include the purchase of land, the developing of the infrastructure including roads, utilities and other elements and city fees.
“I don’t think most people realize this, but $50,000 [per house] in building permits is common. We pay for parks, schools and other things that people don’t always understand.”
How does Morrison Homes provide aesthetics for lower costs? “We make sure the garage isn’t dominating the elevation of the home, we add stone and brick and different rooflines for variety.”
Gables, porches, small balconies and a variety of roofing materials are also offered. Shutters, columns and exterior arches are other elements that add visual interest.
Bodem says people are willing to opt for a two-car garage with some storage over a more costly three-car garage, and now prefer a larger kitchen/family room over separate formal living and dining rooms. Some flexibility in floor plans is also offered, including a den or additional bedroom upstairs, an office or bedroom downstairs.
“We try to let the buyer decide what they need in the house. When you’re buying a home, you want specific things, you want choices. We want personalized homes, not cookie cutter ones,” he adds.
In Morrison Homes’ new neighborhoods, most of the homes are sold while they are under construction.
“We’ll take a home up to a certain stage where personal choices can still be made, giving buyers only a two-or three-month wait for move in,” says Bodem, although some buyers want to personalize from the ground up.
As buyers have become more sophisticated in their tastes and expectations, so have homes. Granite counters and stainless steel appliances are common in Morrison Homes’ construction, along with bigger windows, sliding doors and upgraded floor materials. Homes have also become more energy efficient, as have building practices.
“Houses are built so much more efficiently today; we’re leaps ahead of years past,” explains Bodem. He predicted that water recycling, new roofing materials and solar power features will become options in the future, joining current selections such as tankless water heaters.
In the meantime, Bodem and his crew pull together to get through the current downturn in real estate and new construction.
“There’s uncertainty in our industry and that makes people nervous,” he says. “We try for open, honest communication and remind staff that real estate is cyclical and that it will return to balance. I work to keep our employees inspired, motivated and to [understand] our vision and goals. They need to enjoy coming to work and I need to provide them reassurance.”
He adds, “When the market was at its peak, we were building lots of houses; now this is an opportunity to catch our breath and sharpen our tools,” so they’ll be focused and ready when the housing industry begins to pick up.
No matter the business climate, Bodem believes “we should be a good corporate citizen.” An employee-led team coordinates volunteer opportunities including helping with home improvements and play structures for the Sierra Vista Foster Care Program and pitching in for the Make a Wish Foundation and the annual Soroptimists’ Christmas Tree effort. The company recently sponsored a canine dog for the deputy sheriff’s department in Stanislaus County.
Phil Bodem is based in Salida; he was interviewed at Meridian Point, Manteca.