This article caught my eye. This sort of project takes some of the best parts of apartment complexes and single family homes and mashes them together.
@Anthony Gayden that's an interesting concept. I get into debates with the 'large apartments are better than sfr or small multis' crowd sometimes because to me I don't see the difference between a large apartment complex that has 10 12 unit buildings and buying 30 4-plexes in the same neighborhood. That concept takes it to the extreme.
Two things that would give me pause.
1) They don't say how big those houses are and I've read that the 'tiny house' concept was big during the great depression as well and then when times got better everyone actually wanted more space. This current tiny house craze has been egged on by all those shows on hgtv but I would love to see how all those people feel about their tiny house 3 years later. Especially the ones with kids...
They pay like $90k for some of them. For that here you could get 3 very nice doublewides with plenty of space live in one and rent the other 3. Honestly that sounds more appealing to me.
2) The comment the person in the article said about 'I dont want people living above or beside me' I think is pretty universal and most people would prefer a stand-alone house. But the problem is with making each unit stand-alone with it's own yard surrounding it is that there's a lot more land involved. Not sure where that's at in Phoenix but I'd bet it's not a high land cost area.
Prices are pretty good for being brand new, stand-alone homes. Scroll down on their site and you'll see they have quite a few fees tacked on so that drives the price up a little higher.
I don't see the model as sustainable for the long-term without bumping rents up quite a bit. With a standard apartment building you get economy of scale. Consider one roof over 12 apartments or one parking lot. With the Christopher Todd community you have four exterior walls, a roof, and fence for every apartment. You have the same amount of parking space as a traditional apartment complex AND you have all the roads to maintain.
I think prices will have to stay high to sustain the investment. If the market drops, tenants will start paying for a standard apartment to save $200 a month and this concept will die a lonely death.
By the way, I think the link I provided is for more of a side-by-side apartment building, not the stand-alone homes. However, you can go through their menu to see other communities that have the tiny houses.
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