AFAIK, the issue around me is largely profitability. You can buy up acres if land, chop it up into 1/2ac parcels, quickly build cheap “luxury houses”, and sell them for 2-3x your costs, easily earning $200k+ per house sold (“Coming soon, from the low $400s…!”). And it’s all with fairly minimal regulation, compared to building high-density housing in existing cities. Compare and contrast that with building low- and middle-income high-density housing, where you’re going to end up managing it as apartments (probably not condos; that’s uncommon in my area); that means that you’re in the red for a larger number of years before you pay back the initial costs of construction, since the profitability comes through rents.
Maybe I’m wrong; all I can comment on is the kind of building that I’m seeing in my area, and the way that the closest city–which was originally about 90 minutes away–is now alarmingly close.
Of course, and I agree (…even as I’m looking at buying a few hundred acres of land in a desert three hours away from any town over 1000 people…). But you’ve got a lot of incentives working against that.
The town I’m in is starting to be a suburb of the city 90 minutes away; the town wants these people, and their homes from the low $400s, because that’s more tax base; they pay property taxes that the town wouldn’t otherwise have. So my town is happy–kind of–to be part of the problem.
That’s the big issue in my area. The city and it’s lovely corporate-sucking politicians keep putting out ‘information’ about the city being “X% developed!” The only thing being developed is more strip malls and high cost houses. Everything green and natural is disappearing. It’s all single-family sprawl, with only a few super-high luxury apartments scattered about and maybe 2-3 apartment buildings that anyone on a lower budget could afford. The politicians get their greedy fingers into higher tax revenues, the developing/building corporations sit back and suck up investor money, and investors get to suck up their profits because housing is relatively scarce and the cost for properties shoots through the roof.
AFAIK, the issue around me is largely profitability. You can buy up acres if land, chop it up into 1/2ac parcels, quickly build cheap “luxury houses”, and sell them for 2-3x your costs, easily earning $200k+ per house sold (“Coming soon, from the low $400s…!”). And it’s all with fairly minimal regulation, compared to building high-density housing in existing cities. Compare and contrast that with building low- and middle-income high-density housing, where you’re going to end up managing it as apartments (probably not condos; that’s uncommon in my area); that means that you’re in the red for a larger number of years before you pay back the initial costs of construction, since the profitability comes through rents.
Maybe I’m wrong; all I can comment on is the kind of building that I’m seeing in my area, and the way that the closest city–which was originally about 90 minutes away–is now alarmingly close.
Sprawl sucks. Density is what we should be promoting.
Of course, and I agree (…even as I’m looking at buying a few hundred acres of land in a desert three hours away from any town over 1000 people…). But you’ve got a lot of incentives working against that.
The town I’m in is starting to be a suburb of the city 90 minutes away; the town wants these people, and their homes from the low $400s, because that’s more tax base; they pay property taxes that the town wouldn’t otherwise have. So my town is happy–kind of–to be part of the problem.
That’s the big issue in my area. The city and it’s lovely corporate-sucking politicians keep putting out ‘information’ about the city being “X% developed!” The only thing being developed is more strip malls and high cost houses. Everything green and natural is disappearing. It’s all single-family sprawl, with only a few super-high luxury apartments scattered about and maybe 2-3 apartment buildings that anyone on a lower budget could afford. The politicians get their greedy fingers into higher tax revenues, the developing/building corporations sit back and suck up investor money, and investors get to suck up their profits because housing is relatively scarce and the cost for properties shoots through the roof.