Wednesday, June 24, 2015

This is a new trend in my burb,



Normally you only see this level of tear down every few years because it is very costly.

Within five blocks of this house though, there are two others - for a total of three. Which is very unusual. I've never seen a cluster like this in any city. It costs a lot of money to buy a house that isn't in horrible shape and rebuilt from scratch.

Apparently land all of a sudden is at a premium, so I'm guessing they are building a giant two story house on this lot.

All I know is that every build-able lot in my city was snapped up over the last year and they are putting up houses on them. Mind you, most these lots can fit at most 20 units. I'll take a picture of them soon because they are small, but tall. People better like to climb stairs because they are three stories high. They are really squeezing the units in there. One lot in the industrial section of town could fit maybe 50-100 houses. It's not that built out yet so it's hard to guestimate.

Apparently though, people in my town have their panties in a bunch about the new units coming on line. First there is the water situation. We are still all on track to die this year, ya know. No one is happy about it.

Even if the drought was solved tomorrow, there are going to be lingering regulations making it much harder to build houses for the foreseeable future. Things will get much more interesting from here on out because of this. They also think these houses are going to bring their values down. Which is funny because you can't believe the amount of people looking for housing right now. People want to quit flopping at the parents house, but they can't find a place.

We've been at recessionary building levels for seven years now. More than twice the average. Normally recessions are only three years. There is a huge pent up demand.

14 months ago I started realising there would be housing shortages, and tada - I think it's finally arrived. Read - A new housing crisis looms. A shortage. It's crazy what I've been reading about rents, and I have a rental! It's getting a lot of attention right now because so many people are looking. I locked someone up a month ago, so my unit is out of the running.

The whole time during the recession I'd read these articles about how much better it was to rent. I'd always sort of laugh because rents go up. Sometimes they go way up. I hope those people are eating their words right now.

I don't know where things go from here because the easy land is taken up now. I think that means housing will only get more expensive.



1 comment:

Anonymous said...

The teardown isnt a land shortage as much a reaction to regulations. There are a lot of features you can include and cost savings when you are grandfathered into the old property code. DF