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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Builders are already pumping out $2M+ SFHs. Letting them produce some less expensive housing options is not a bad thing. [/quote]Because Arlington needs more $1m condos.  [/quote]

If people buy/rent them, then yes. If the market doesn’t pan out then the builders will go back to SFHs.

I think there is a market for cheaper homes in the “better” school districts. Imagine some THs over by Discovery. [/quote]
No, they won't got back.  A six unit building would be $6m if each sells for $1m vs a single family house that would be $2.5m.  They can discount the units in the 6-plex a ton before ever getting close to the profit they get from a SFH.  Developers are incentivized to build as much as they can get away with.  They'll build the most sq ft and largest number of units approved for each lot, which does not work out to family friendly units. [/quote]

So then maybe we do need more $1m condos if the builders can sell them. [/quote]

How would these units ever sell for 1M?  A 6 plex will include relatively  small units in a building with no amenities.  [/quote]

So then they won’t be as profitable for builders?

Either the market supports them or they don’t. [/quote]

Actually, I don't understand the economics of why MM is incentivizing 6-plexes where possible. Say each unit rents out for 2500/month, that's 180K/year in cash flow. Net operating income is probably 2/3rds of that? So 120K/year. At a current cap rate of 5% for multifamily, that's a $2.4MM property. That's what a developer could sell a new construction SFH for anyway. So why not do that instead? Can someone explain?[/quote]

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