Reply to Alexandria on the Cusp of Eliminating All SFH Zoning

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't know...sounds like eliminating SFH zoning is a boon for existing SFH owners.  Won't a developer that intends to replace your SFH with a 4-plex or 6-plex be willing to offer a major premium over someone who simply will use it as a SFH?

Am I missing something?[/quote]

PP here.[b] Sure, the money's nice, but it's a one-off. We're all screwed when we go to buy a home that's the next level up. Many homeowners are already stuck in place because of interest rates and increased home values over the last few years. [/b]The issue is ill-timed and will only add to the inventory problem. And no, four townhomes here and there won't help.

Housing aside, my real issue has more to do with Council's arrogance and dismissive behavior, paired with how they talk out of both sides of their mouth. It's affordable housing all the live long day and then they pull this. It's a betrayal of trust. I'm actually not sure they even know what they're advocating for. It's like they're easily distracted by shiny buzzwords.

[/quote]

I'm genuinely trying to understand the bolded.  You are saying that people can't move out of their homes due to low inventory and interest rates.  I get that.  But how would allowing multi-unit development affect that at all?  I don't get it.

And if you're saying that developers will have less incentive to build the "level up" housing ("mcmansions") I guess that is true.  But it is also the point.  You would also be free to buy an existing one or a tear down/land yourself and build on it.[/quote]

I think we can all agree that $1M townhomes can't be built fast enough to keep up with local demand. That's part of the problem. The other build down to when builders are able to squish four $1M townhomes on a lot that would have previously held a $2M new build, the land becomes more attractive/profitable.

Builders generally have access to more cash than the typical buyer and will be willing to pay a higher price to elbow out competition if the profit margins are right. Whenever a property sells, it becomes a sales comp for nearby properties. The side effect of properties selling for more is that the increases are factored in with neighbors go to sell their homes and adjust asking prices accordingly. Those $1M townhomes of today, become $1.1M townhomes tomorrow. As a baseline, we'll assume most folk's incomes aren't growing at a speed that tracks with the local home prices.

Everything gradually becomes more expensive, adding to the number of people who can't afford to move to the next level up.

Also, thinking that locals are free to manage their own tear down and build ignores that they'll have to likely outbid a more flush developer, hire a builder at a premium and require access to a greater deal of cash when compared to standard financing. It's like saying you can have this widget as long as you're willing to pay way more than it's worth. On the flip side, developers have talent and efficiencies in place, which puts them in the lead in most purchasing situations. It's a falsehood to say there's equal opportunity in the scenario. This is why we're screwed.[/quote]

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