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Why developers seem to only build luxury housing (2018)

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Re: Why developers seem to only build luxury housing (2018)

#61
post #37

Points #3 and #4 seem to be arguing that regulation is the problem here. In the UK, developers aren't allowed to build a new development (of >5 [some areas] or >10 dwellings [everywhere]) without providing sufficient affordable housing. This is usually a mixture of shared ownership properties and affordable rent properties (which must be no more than 80% of market rent, incl charges) which must be built alongside the…

It's ironic that I know someone who lives in a building where sprinklers have been retro-fit in the most incompetant and chaotic manner you could imagine.

The problems within the UK construction industry go far, far beyond the implementation of obvious saftey measures.

The Grenfell disater would never have happened if works had been carried out in accordance with regulations at the time, sprinklers or no sprinklers.

Re: Why developers seem to only build luxury housing (2018)

#62

why don't more people act as their own architect / build more of their housing themselves? I'm coming from an attitude of "a house is a home , a machine to make the lives of my family easier and more comfortable", not "houses are an investment with incidental utility as shelter." Is it that many don't care about their house as a home?

> Is it that many don't care about their house as a home?

Most people do not even understand something as simple as marginal income taxes and income tax withholding procedures. They would be well out of their league managing real estate development. Not to mention they would need to quit their day job to manage all the contractors.

And even with a general contractor (GC), you need to know enough and spend enough time to make sure you and/or the GC is not getting scammed. You will not find out about big problems until years after, and good luck pursuing those at fault.

Also, most people have nowhere near the necessary liquidity or cash flow to handle purchasing land, obtaining a construction loan, and managing payments for materials and labor.

Re: Why developers seem to only build luxury housing (2018)

#63

Earlier quoted context omitted.

I can't fathom the logic behind the idea that we'll get people to build brand new housing to a high spec and sell it for less than existing, very expensive housing. Every time anyone builds stuff near me there's cries of "BUT IT'S NOT AFFORDABLE!!!" and I just think... duh? New cars are expensive too, which is why you buy a used one....

But older houses are better (nicer architecture, better materials, more space, more mature trees) than newer houses.

Nicer architecture: Only sometimes. Sometimes, old is just old and plain. Not to mention that things change over the years: I'm guessing by 'old house' you refer to something built pre-1940 and not the ranch style house built in the 60's: Those houses from the 60's are over 50 years old, though.

Better materials? I'm not convinced. Drafty doors and windows, little insulation, lead paint, outdated plumbing parts, and old wires are a few things that were used. Any serious look at windows used during building booms during the 50's dispels the materials, honestly - at least in the US.

More space? Again, only if you get the right house. Plenty of old houses are small. You also have a bit of survivor bias here: Old, large houses that were expensive were more likely to be maintained and preserved later. I'll also point out that a good deal of old houses are now apartments, and also point out that the space you get in an old house costs more to heat. On top of that, this was a space designed for a different time period. That means that space can be a much less efficient space than you get in a new house that is wired for modern times.

Maybe using more mature trees really isn't something we should be doing right now? At least some of those mature trees contributed to deforestation and it seems better to get trees not from old growth, but from new growth from a well-managed forest area, where swaths of trees are replanted.

Old houses are just full of downfalls, even if you happen to be getting more space and possibly a better looking house.

Re: Why developers seem to only build luxury housing (2018)

#64
Never in the history of modern housing has new housing never not been an overwhelmingly consumed by the people at the top of the income/wealth distribution. Even in the home building explosion of the 50s and 60s, new homes were purchased by the upper middle class.

But the point is that todays new luxury homes become tomorrow’s working class bargains. The analogies to the car market are instructive. Wealthy people, by insisting on paying top dollar for the latest style and technology, indirectly subsidize the poor. Their constant rotation to the latest and greatest creates a huge surplus of used cars/homes that are almost just as good (even if not as high status) as their new counterparts.

Or at least this is how it worked until the NIMBYs took over and blocked the demand for new luxury housing.

Re: Why developers seem to only build luxury housing (2018)

#65

why don't more people act as their own architect / build more of their housing themselves? I'm coming from an attitude of "a house is a home , a machine to make the lives of my family easier and more comfortable", not "houses are an investment with incidental utility as shelter." Is it that many don't care about their house as a home?

How does that work if I want something cheaper than a single family home such as a condo? I can't build a stand alone condo (I mean a stand alone 600 square foot house on a 0.05 acre lot would be awesome for me but zoning regulations prohibit that in practically all areas of the US). I'd need to organize dozens of people that also want a condo. That's not really feasible for me.

I'd also say zoning generally prohibits this in most desirable areas. Developers have the ability to do a lot of legal work to get approvals and permits. Since they are getting approval for a large number of buildings or units, they can distribute that cost and so they can sometimes build in those desirable areas where it would be too costly for me to build as an individual.

Re: Why developers seem to only build luxury housing (2018)

#66
I wish this were true in India, specifically, in tier 1 cities. They keep building high rises with lots of amenities while I’d like to live in a townhouse or a single family dwelling in an otherwise dense development. Indian families deserve split multi-level housing too but all we get as options are flats. Maddening.

Re: Why developers seem to only build luxury housing (2018)

#67
The real issue here is scarcity of square footage. The US has more than enough land to house everyone.

According to Wikipedia:

* ~4 million mi^2 of land * ~130 million housholds

This is about 19 acres per family. Of course this is an overestimate because a lot of land is waterways, mountains, etc. Even if we assume that we're off by 100x that's .2 acres/family which equates to a house something like this: https://www.zillow.com/homedetails/40-Canvasback-Ln-Elizabet...

Maybe instead of trying to put as many people as possible into as small of a square foot area we could:

1. Build public transit that can cover larger distances. (Street cars, busses, subways)

2. Artificially stimulate new communities (0 property & sales tax for any restaurants, bars, theaters, etc for 30 years)

3. Build out high quality infrastructure. This could be built underground with maintenance tunnels that allow these utilities to be repaired and could be subsidized by the construction of subways. (sewers, power, fiber)

Re: Why developers seem to only build luxury housing (2018)

#68
post #43
post #37

Points #3 and #4 seem to be arguing that regulation is the problem here. In the UK, developers aren't allowed to build a new development (of >5 [some areas] or >10 dwellings [everywhere]) without providing sufficient affordable housing. This is usually a mixture of shared ownership properties and affordable rent properties (which must be no more than 80% of market rent, incl charges) which must be built alongside the…

> Is this a thing in the United States? If not, why not? So local entities govern building in the USA. I know that where I live, Boulder, has a requirement for affordable housing to be built in any new development, but also allows for the developer to pay cash in lieu of building the affordable housing. The cash is then used by other entities (non-profits, the city) to build affordable housing. More here: https://bou…

Is there any appetite for something at the federal level, or would this be seen as an unwelcome intervention for something that should be devolved to state level?

It's great that one city in Colorado has done something (and I'm sure it's not the only locality), but I can't help think that this sort of governance must lead to a ton of fragmentation in regulations.

Re: Why developers seem to only build luxury housing (2018)

#69

Earlier quoted context omitted.

With asbestos, lead, I couldn’t just pick a piece of land and go to a showroom and get exactly what we wanted. Choose to get cat 6 prewired throughout the house. Some really old ones don’t have central air (even my parents house they had built in 1978 did). I’ve bought five properties over the years. The two I bought to live in I had built and never had the maintenance costs people complain about (2002-2012 and 2016…

At least in the UK I don't think most people care about the tech of their house (air conditioning, certainly not network cabling) like this.

Air conditioning is going to hugely increase in popularity here in the UK. I think people like the tech, including better heating and sound and heat insulation and FTTP, but it's balanced out by the poor reputation of new builds in terms of quality issues.

Re: Why developers seem to only build luxury housing (2018)

#70
post #30
post #16

Earlier quoted context omitted.

Car-centric living is absolutely not quality-of-life focused...

Depends where you live. That's a broad assertion to cover a wildly divergent spectrum of community types.

It’s an easy assertion to make because even car transit itself is better in places that aren’t car centric. (Because fewer people are on the roads, and roads are much safer.)

https://youtu.be/d8RRE2rDw4k

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