Here's a Shocker- People Can't Afford McMansions!
April 4, 2008 by Admin · 2 Comments
Incredible- it’s taken years for developers to see that the concept of "build it bigger!" simply doesn’t cut it. Here in Charles County there is a minimum home size for new construction- 1,650 square feet. That number has been inconsequential during the past real estate boom because people were eagerly buying homes that were 3,000+ sf, and it seems that now people’s tightening budgets are forcing them to look at more modest homes.
Link: Smaller is better for homes, say builders
When I look at who’s buying homes right now, the vast majority seem to be first time Maryland home buyers, looking to purchase what they can afford, and with the lending crunch, that makes it difficult, if not impossible, to buy these sprawling homes on postage stamp lots.
It’s a simple idea, really. Build homes that people can AFFORD. If that means reducing the minimum home size to 1,400 square feet, builders should be able to offer new homes for less than $300,000, and in return buyers will be able to afford to purchase their first home.
I’ve noticed that people looking to buy real estate in Waldorf are confronted with this problem: The cheapest single family rambler, built new, is just under 360k, without any improvements/upgrades. For that price they could buy re-sale for under 290k, with more square footage (less than 2,000 sf.). Simply put, this needs to change, and new construction needs to be built smaller in order to be more affordable.
I think that the local commissioners need to take a good hard look at what’s happening in our local region, because home ownership costs are a SERIOUS concern. It’s hard to entice people and businesses to move to a region that does not have affordable housing. It’s not that the region is completely devoid of modest single family homes, but NEW developments simply don’t match the description, and that NEEDS to change.
~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com
digg_url = ‘http://www.teambenya.com/charles_county_real_estat/2008/04/heres-a-shocker.html’;
This sq. ft. thing is an enigma.
In 1975 average sized home was 1,500 sq. ft. Now, it’s 2,400.
Why the huge jump in size, I wonder. As far as I can see, 1,500 sq. ft. is adequate.
Jack, I think you’re absolutely right. People feel the need to “compete” I think, which has contributed to the glut of oversized housing. It’s an epidemic to me and unfortunately builders need to stop overbuilding in order to end this nonsense.