Which means they aren’t issues for you. They are for other people.
DB2
3 Likes
Many places make it very difficult to build anything at all. For example, much of CA is like this, there is just so much red tape that it takes a lot of extra money and a lot of extra time to get anything built. And when I say “anything”, I mean anything, including government projects, government backed projects, public projects, private projects, infrastructure projects, etc. All of it.
Other places have a general culture of corruption where the thing that determines how fast you can build, and how easily you can build, is essentially “political contributions” (and other sorts of contributions as well). Large swaths of FL are like this.
And other places have a culture of “good ole boy” where you can build fast and easily only if you’ve hired the “right people” who know the other “right people”, because their families have been associated with each other for generations. Many smaller towns and villages and counties are like this. There are counties in Georgia where nothing can get built unless there is a “Johnson” or a “Smith” working for the developer in some sort of management position.
But there are very few places in the USA where the default for property developers is quick and easy.
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Not a blanket ban on single family housing. A blanket ban on single family only zoning.
If your neighbor wants to put up a duplex or 4plex on the lot next door, the local zoning board can’t stop it. Oregon passed this law in 2019.
intercst
2 Likes
Precisely. Just flip it and you can see, what you thing you need is not necessarily everyone needs it. There are lots of folks who need cheaper housing, easy access to public transportation, not to drive 2 to 3 hours a day to work and back, etc.
I lived all my life in apartments. The apartment has gym, swimming pool, big common area, etc. The cities I lived has excellent parks, trails, beaches for walking, outdoor activities. Our ability to have friends/ family for dinner are least impacted. In fact, my son used to bring his friends all the time (especially in summer) for pool parties and workout in gym, etc.
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Yep. My “rent vs. buy” analysis revealed that home ownership was a loser until the 2008 mortgage meltdown when I bought a home for 70%-off it’s 2008 value in 2012. Absent that, I’d still happily be a renter.
intercst
2 Likes
On a side note, about a year ago I took a position in Tol Brothers, a higher-end home builder. It is now up some 75%. A high percentage of high-end buyers pay cash.
DB2
1 Like
Just curious. What was your rent in 2007, and what would an equivalent rent be in 2024?
Interesting argument. Another method could be to change the zoning regulations so that single-family zoning definitions automatically include multi-family zoning. That strategy is one where zoning definitions automatically include everything below, so an area could be zoned for multi-family only but it couldn’t be zoned for residential without allowing multi-family. In many places, this could result in more apartment constructions and decreased commute times, which would dramatically reduce the burdens for road construction and maintenance.
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Think the value of future rents not collected. Then put up the money to earn that. Regardless of the zoning and city, the finances take a lot of wherewithal. The finances are required by the city to move forward.
What I am really getting at, it is the same in any age including 1962.
Year===== Rent====Home Prices
2007=====$1,000==$180,000
2008=====$1,050==$200,000====Pre-Crash Peak
2012=====$1,200===$67,000====When I bought
2024=====$2,550==$280,000
Prior to 2008, plenty of rental units available because everyone was buying homes. By 2012, rental rates started increasing because so many people had been foreclosed out of their homes, rental occupancy rates were around 95%. Monthly rents have doubled since 2012, but now are slowly moving down because of more apartment units being built in the past 5 years.
intercst
3 Likes