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Metropolitan DC Local Politics
Reply to "MoCo Planning Board Meeting - Upzoning"
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[quote=Anonymous][quote=Anonymous]Arlington resident checking in here. I wanted to comment about all of the folks who are saying "if the economics won't work for 4-plexes then they just won't get built". That's not how it's shaping up over here. We're getting experienced SFH builders who are newly trying their hand at multi-family, only slightly aware but have never directly experienced all the extra costs that kick in at the multi-family level: FHA requirements with parking, access, accessible units, fire access requirements, different environmental standards, etc. On top of that some developers are planning on playing landlord to diversify their cash flows (steady stream of rent vs one time influx from SFH sale) - all fine but it's still an inexperienced landlord situation. And if they just want to build and sell, cap rates on multi-family are different and they're less plugged into investor networks that deal with different housing types than their bread-and-butter SFH. In summary, the developers are speculating. It might all work out! But they could also lose their shirt! Either way, they're building, but let's not pretend this is some efficient market hypothesis stuff going on here.[/quote] The ignored story here is that the disasters that will occur with the families housed in these smaller complexes. [/quote]
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