Today, it is extremely difficult. The homes that are more in reach of Silicon Valley families in today's market are condominiums and townhouses. The problem is, few of them are being built. According to the Construction Industry Research Board, in the 1980s condominium sales in California accounted for nearly one out of three of all new homes sold in the state. By 1999, it dropped to less than one out of 10.
Litigation drives up the cost of insuring home builders.
As a result, most insurance companies are refusing to insure townhouse and condo construction projects in California. And those that do are charging two to five times more what would be charged for a similar policy in another state. There is no question that some defect claims are for legitimate and serious flaws. But just as often claims are filed for minor defects that had not, and would not, pose a risk to the building or its occupants. Examples of this include cracks in concrete floors, bowed stud walls, and roof drains that do not work properly.