COAST RIVER BUSINESS JOURNAL
APRIL 2018 | 9
BUILDER PROFILE
Rich Elstrom Construction
How long have you been in the
construction business?
“I started contracting in 1978,
formed corporation in 1980. I
worked in home construction prior
to that.”
What motivated you pursuit it
as a career?
“It was what I knew how to do.”
What’s been the biggest lesson
you’ve learned through experi-
ence?
“It will almost always take lon-
ger, be more involved and cost more
than you originally thought.”
Is there any wisdom you’ve
obtained that you wish you knew
when you started?
“Pay attention to your instincts
about new clients.”
What are the obstacles facing
the industry?
“Labor force, new regulations
and ever-changing fee structures
such as SDC’s.
What are SDCs?
“System Development Charges.
For instance, here in Seaside, in ad-
dition to the building permit, sew-
er and water hookup fees, there’s a
system development charge which
was about $9,000. That’s a pretty
hefty fee that didn’t exist 30 years
ago. More cities and municipalities
are jumping on that bandwagon. If
you build out of the city, you don’t
have that.”
What costs do new homebuild-
ers often overlook?
“A large percentage of people
buy a house that’s already con-
structed, probably less than 25
percent have a custom home built.
There aren’t many that are given
that choice (of custom home con-
struction). The only way they can
choose is deciding which home to
buy, and all they typically know is
what it costs and how many square
feet they get. What they don’t
know is how long their home will
last, they don’t know the quality of
materials. When people buy they
generally think I can get this many
square feet for this many dollars and
I’ve cut a pretty good deal, but they
move in and five years later they’re
replacing flooring, cabinets, siding,
windows etc. They don’t have that
Rich Elstrom has been building custom homes on the coast since 1978. “We try to build to last, that’s been our
philosophy,” he said.
factor of dollars per square foot per
year of lifetime, but when we’re
building custom we can get into
that conversation and talk to peo-
ple about what products are more
durable, what floor coverings work,
which windows and siding will last,
whether you spend more for a valve
on your kitchen sink, one that will
last five years or 30 years. We try
to build to last, that’s been our phi-
losophy.”
Is there an average price for a
custom home build?
“The industry has a huge price
spread. Budget, custom homes used
to be $100 per square foot, now
their $125 or $150, but that’s the
baseline. We’re starting at $200-
250, up to $350.”
How does your business today
compare to 10 years ago?
“We have grown and become
more adept about defining roles and
levels of management.”
Is there a building or project
you’re particularly proud of?
“The reconstruction of the Gov-
ernor Oswald West log home in
Rich Elstrom
Construction
Rich Elstom, owner
Address: 524 D St, Gearhart, OR
97138
Phone: (503) 738-0274
richelstromconstruction.com
Rich Elstrom established his custom
home construction business in
1980. He mentioned the labor force,
new regulations and ‘ever-changing
system development charges’ as
the obstacles facing the industry.
Cannon Beach. I’m most proud of
seeing the structures we have built
still performing well. We have
also been involved in a number of
‘green’ construction jobs that had
us working with different materials
and sources. A lot of our clients ask
for green aspects of construction,
whether it be the sourcing of the
material, responsibility harvest-
ed lumber or formaldehyde-free
panel goods. Most of the suppli-
ers have embraced their products
being greener. There’s a lot more
repurposing and recycling lumber
too. When they took the logs off
port dock #1, Trails End Recovery
bought a bunch of them. We’ve
done seven or eight mantles with
that.”
Have there been any trends
that have come and gone?
“Yes, there are lots of trends. I
think everybody still wants to get
the most for the least amount of
money. A big trend in our industry is
the building envelope — the siding,
the perimeter of the structure we’ve
gone to a drainage plane. The codes
have adopted that. We don’t just put
siding straight on nailed over the
plywood side, we put an airspace
in behind. It’s a way for the house
to last longer. Building science has
caught up with building code. Not
all builders do that, it adds to the
price. We’ve remodeled during the
winter on some homes and found
that if siding or shingles get wet on
the backside, they never dry out all
winter. It’s not healthy for the build-
ing paper and everything else.
How have the building materi-
als changed over the years?
“One of the big changes are floor
joists that support the floors. Those
have gone from solid lumber to an
I-joist, which is an engineered wood
product made out of wood flakes
and fibers. They’re much lighter
and more stable. It’s been a big deal,
it changed a lot. The beams and ev-
erything aren’t just timber anymore,
they’re all engineered. They’ve
found a way to more fully use the
timber products that are harvested.”
What are the unique challeng-
es or obstacles to building on the
coast?
“Primarily the unrelenting cli-
matic conditions and corrosive el-
ements.”
Are there things that are of-
ten overlooked by less scrupulous
builders?
“Water tight integrity of the
building envelope, particularly the
installation of windows, doors and
siding.”
What things should a custom-
er consider when selecting a con-
tractor?
“Look for a builder experienced
dealing with local conditions and
carefully check references.”
How do you distinguish your
business among others (that may
offer similar services)?
“We strive to have our employ-
ees on site during the entire job with
continuous management. Most of
our carpentry work is performed by
our direct employees which allows
us to carefully manage results.”
How many employees do you
have?
See ELSTROM, Page 14