We Need Higher Density & Smaller Homes - Thoughts?

Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes

Affordability is one of the biggest challenges in today’s housing market.

I believe smaller, more dense units are part of the solution:

1) Buyers can only afford smaller homes in today’s economy.

2) Denser units maximize the land available, increasing housing supply to help offset demand and ultimately bring costs down overall.

It’s not just about building more, it’s also about building smarter.

What are your thoughts?

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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

Nobody is going to build "starter" homes unless there are incentives that help absorb your fixed costs - developing lots, utility connections, grading & surveying, etc. The price to build is not linear so the bigger the house that can be built the greater the profit per SF. Everyone complains that there's no affordable housing anywhere, but that's just not true. Affordable housing is rentals; it's townhouses and condos; it's manufactured housing. Stick built homes on city lots are going to be expensive.

Also, it depends on what area of the country you're talking about. If I wanted to spend an hour doing it, I could probably put together a list of at least 50 cities where you can still buy housing for $100/sf or less. Of course they're not going to be in Charleston or Clearwater or San Antonio; they're going to be mostly in midwestern areas that are dying for any population growth. That's what Americans used to do - they moved to affordable areas. Today's Americans want to live on Sunset Strip and pay Main Street USA prices. Everyone wants to live in the fancy areas with great climates and arts and nightlife and low cost of living and everything else, and it's just not reality.

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see
5 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Caleb Brown:

I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see

its very market specfic out this way.. used houses sell for as much if not more per sq ft than new builds.. for starter housing most of that has gone the townhouse route.. cheaper than free standing. and the big production builders can build those pretty efficiently.. mom and pops not so much.. I know i personally wont build anything with adjoining walls as the long term liability is to much risk for me.
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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
1y
The problem is the government would have to get out of the way. And I don’t know if they’ve ever given up a power they took or a fee they’ve imposed.
Look at every single existing and new build. The cost per sf skyrockets as house size decreases.
You could convince people they should have their kids, parents and/or grandparents live in their houses with them.
Ps. If smaller living space was the answer we could just build a boatload of 1000 unit apartment buildings. (Call them condos if you want the pride of ownership.) But Americans have pets they love and want our space. There’s a boatload of affordable housing across the country in small towns. But affordable housing isn’t good enough. It has to be in the most desirable/expensive areas of the country. Many people assume they have the right to affordable housing in markets the middle, or even upper middle class can’t afford.
3 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Caleb Brown:

I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see

one of the reasons why existing is as much if not more than new builds is that lot values out this way are 150 to 300k or more per buildable lot.. so existing houses start already with this underlying value then work up.. when your in a market in the mid west were houses are bought and sold for 150 to 250k the residual land value for vacant lots is anywhere from Nothing to maybe 15 to 30k per lot..
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Devin JamesPro Member
OP
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
1y
Quote from @Caleb Brown:

I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see

Agreed on the first part
We build 1990 sqft homes because thats where we find the best price per sqft. We cant make smaller homes work in most markets.
But smaller homes are selling significantly faster since thats what Buyers can afford
[email protected]
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Devin JamesPro Member
OP
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
1y
Quote from @Bill B.:

The problem is the government would have to get out of the way. And I don’t know if they’ve ever given up a power they took or a fee they’ve imposed.
Look at every single existing and new build. The cost per sf skyrockets as house size decreases.
You could convince people they should have their kids, parents and/or grandparents live in their houses with them.
Ps. If smaller living space was the answer we could just build a boatload of 1000 unit apartment buildings. (Call them condos if you want the pride of ownership.) But Americans have pets they love and want our space. There’s a boatload of affordable housing across the country in small towns. But affordable housing isn’t good enough. It has to be in the most desirable/expensive areas of the country. Many people assume they have the right to affordable housing in markets the middle, or even upper middle class can’t afford.

Great insight
Agreed that the price per sqft skyrockets as home size decreases. We cant make smaller homes work in most markets and mostly build 1990 sqft homes.

I DO see smaller homes selling significantly faster and larger homes sitting longer.
[email protected]
1 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Townhouses in shared lots are the new starter homes. There's a death to starter homes, no one will build them.
3 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
1y
Nobody is going to build "starter" homes unless there are incentives that help absorb your fixed costs - developing lots, utility connections, grading & surveying, etc. The price to build is not linear so the bigger the house that can be built the greater the profit per SF. Everyone complains that there's no affordable housing anywhere, but that's just not true. Affordable housing is rentals; it's townhouses and condos; it's manufactured housing. Stick built homes on city lots are going to be expensive.
Also, it depends on what area of the country you're talking about. If I wanted to spend an hour doing it, I could probably put together a list of at least 50 cities where you can still buy housing for $100/sf or less. Of course they're not going to be in Charleston or Clearwater or San Antonio; they're going to be mostly in midwestern areas that are dying for any population growth. That's what Americans used to do - they moved to affordable areas. Today's Americans want to live on Sunset Strip and pay Main Street USA prices. Everyone wants to live in the fancy areas with great climates and arts and nightlife and low cost of living and everything else, and it's just not reality.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
I think a mix of housing options is important, but ultimately it comes down to what people will buy and space. Starter homes (at least where I am) have gotten bigger over the years with more higher end finishes further increasing the costs. In larger cities like Vancouver BC, the newer condos are smaller so they can get more units in each high rise and because the cost of housing is really high ($1.3M for a 820 sq ft 2 bed/2 bath condo).
2 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
OP why?
Forget the politics. If we bring in 20mm people with no money they take up all of the low priced housing. This in turns hikes the price on mid size housing. Plus it drives down wages so existing population can’t move up in housing.

Add in Airbnb and you drive up housing.
Add in tariffs for Canadian lumber 3 years ago and potential future China and Mexico tariffs.
Don’t see cheap housing in the future. Unless as stated above there is cheaper housing out in the country side. But most ethnic groups always start in large cities.
My family with 3 young kids on an E8 wages started in a trailer and apartments. Later the American dream 40 acres and a large house. Opened a trailer park next to our house for military.
Who is your market for lower cost housing. As a developer what plans and developments do you have in progress?
4 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
We are building a house for one of our workers. $5,000 to hook up water and electric. About 100 yard pull from street. Septic system about $1,000 we will build.
House is 30x40 with 10x30 of that as an open porch. Concrete pad and cinder block walls. Metal trusses and roof. Budgeted for $25,000.

No closets. Open floor. Another $5,000 for electrical and plumbing.
No architect drawings, no permit fees. Add another $5,000 for labor. $3.00 per hour.

So you can build low cost housing even if you use higher labor rate.

Kids on Xmas break working to build the house for their grandfather. Also helps them to pay for their school uniforms, books, lunches and school fees.
3 Reply
Austin WolffPro Member
Rental Property Investor · Los Angeles, CA · Member since 2024 · 139 posts · 134 votes
1y
Quote from @Devin James:

Affordability is one of the biggest challenges in today’s housing market.

I believe smaller, more dense units are part of the solution:

1) Buyers can only afford smaller homes in today’s economy.

2) Denser units maximize the land available, increasing housing supply to help offset demand and ultimately bring costs down overall.

It’s not just about building more, it’s also about building smarter.

What are your thoughts?

This is exactly what the builders of my first property have done in Fayetteville, AR. They're definitely ahead of the curve, but Northwest Arkansas has very little red-tape when it comes to building. I've actually enjoyed living in this high-density neighborhood -- more privacy than an apartment or townhome, more social and walkable than a suburb.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @V.G Jason:

Townhouses in shared lots are the new starter homes. There's a death to starter homes, no one will build them.

this was and is starter homes in the SF bay area all the way back into the 80s.. rest of the country just catching up.. We have 3 projects going in Loudoun county VA and in my poking around there and looking at product there is some massive townhouse developments there to try to capture the starter or lower priced housing.. I saw the same thing up in Allentown area of PA. when you get to the rust belt and mid west no real need for it in a big way when you can still buy nice SFRs for 150 to 300k all day long.
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1 Reply
Devin JamesPro Member
OP
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
1y
Quote from @Henry Clark:

OP why?
Forget the politics. If we bring in 20mm people with no money they take up all of the low priced housing. This in turns hikes the price on mid size housing. Plus it drives down wages so existing population can’t move up in housing.

Add in Airbnb and you drive up housing.
Add in tariffs for Canadian lumber 3 years ago and potential future China and Mexico tariffs.
Don’t see cheap housing in the future. Unless as stated above there is cheaper housing out in the country side. But most ethnic groups always start in large cities.
My family with 3 young kids on an E8 wages started in a trailer and apartments. Later the American dream 40 acres and a large house. Opened a trailer park next to our house for military.
Who is your market for lower cost housing. As a developer what plans and developments do you have in progress?

Hey Henry,
We've built and sold 70 homes since 2021.
When we were first selling homes in 2021, Buyers were upgrading to larger homes since interest rates were 3ish% and they could afford the extra 300+ sqft.
Today, we see smaller homes selling significantly faster than larger homes. People can't afford the extra sqft now due to the rates.
I understand that historically, rates are pretty average, so i dont see them coming down much.
America is significantly undersupplied in housing. So we need to build more, and if people can only afford smaller units, then we need to build smaller. BUT Building smaller doesn't work well as builders because we cant spread our costs out across larger sqft, so we need to build with a higher density.
We have 3 active projects currently in Central FL. 1) 253 townhomes on 38 acres. 2) 135 SFH's on 48 acres 3) 153 attached SFH's on 21 net acres.
[email protected]
0 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
1y
Quote from @Bill B.:

The problem is the government would have to get out of the way. And I don’t know if they’ve ever given up a power they took or a fee they’ve imposed.
Look at every single existing and new build. The cost per sf skyrockets as house size decreases.
You could convince people they should have their kids, parents and/or grandparents live in their houses with them.
Ps. If smaller living space was the answer we could just build a boatload of 1000 unit apartment buildings. (Call them condos if you want the pride of ownership.) But Americans have pets they love and want our space. There’s a boatload of affordable housing across the country in small towns. But affordable housing isn’t good enough. It has to be in the most desirable/expensive areas of the country. Many people assume they have the right to affordable housing in markets the middle, or even upper middle class can’t afford.

I would go a step further and say there is a Thought-Cancer in US Society today that people feel there not only entitled to affordability, but that it's focused to and for THERE "affordability". That reality be made to conform to them.

As in; they do ___, earn ___, and WANT ___ & ___ & ___ and thus, "the government should" make everything they want conform to there affordability.

The concept of "EARN" is gone in these hearts and minds. The definition, like so many other words, has been replaced with what was that of desire.

Nobody should be surprised, we literally social-engineered this.

We grew them in an environment where nothing required to be earned, everything was given simply for having wanted it. No negative action however ridiculous was not stifled, instead it was declared the system need conform to facilitate there whims however ridiculous.

We segregated them from any degree of competition, failure or necessity to conform to any standard. We raised them in a fantasy ultra-Marxist nirvana concept that not only does not exist but has never existed in the world because in literally every attempted iteration ever taken of any size of scale, be it commune or country, has failed miserably.

And here we are, reaping it's failing yet again....
4 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
1y
@Devin James what your missing is that the sociology changes significantly across this nation.
What people will accept and even desire in FL can and will be wildly different from those in other areas of the nation.
And than the fact that density brings it's own problems and added expenses. It requires considerable infrastructure investment. Roads, water/sewer, city services, heck even just the planning for such is not a simplistic thing for all.
Not to mention the very long list of the horrors that density of housing combined with poverty has brought all but 100% of the time over history.
Density is not a cure-all silver bullet. It is a tool, has it's place for sure, but a far cry from universal solution.
3 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Quote from @Devin James:

Quote from @Henry Clark:

OP why?
Forget the politics. If we bring in 20mm people with no money they take up all of the low priced housing. This in turns hikes the price on mid size housing. Plus it drives down wages so existing population can’t move up in housing.

Add in Airbnb and you drive up housing.
Add in tariffs for Canadian lumber 3 years ago and potential future China and Mexico tariffs.
Don’t see cheap housing in the future. Unless as stated above there is cheaper housing out in the country side. But most ethnic groups always start in large cities.
My family with 3 young kids on an E8 wages started in a trailer and apartments. Later the American dream 40 acres and a large house. Opened a trailer park next to our house for military.
Who is your market for lower cost housing. As a developer what plans and developments do you have in progress?

Hey Henry,
We've built and sold 70 homes since 2021.
When we were first selling homes in 2021, Buyers were upgrading to larger homes since interest rates were 3ish% and they could afford the extra 300+ sqft.
Today, we see smaller homes selling significantly faster than larger homes. People can't afford the extra sqft now due to the rates.
I understand that historically, rates are pretty average, so i dont see them coming down much.
America is significantly undersupplied in housing. So we need to build more, and if people can only afford smaller units, then we need to build smaller. BUT Building smaller doesn't work well as builders because we cant spread our costs out across larger sqft, so we need to build with a higher density.
We have 3 active projects currently in Central FL. 1) 253 townhomes on 38 acres. 2) 135 SFH's on 48 acres 3) 153 attached SFH's on 21 net acres.

OP it’s a Relative question for me.

Do we need more housing. I’m betting on it. Doing our second subdivision. 18 lots on 75 acres. Obviously in the other end of the spectrum than your developments.
Who is your market? What wage scale? Single or family? Section 8? Square footage? What market, Orlando or Glenwood, Iowa?
20mm people in the last 3 to 5 years with no cash or social programs found a place to live. Made that up, no data source. Is this the market? Or the market just above them?
There are 76 mm baby boomers about to leave say 30mm homes in the next 10 to 20 years.
In Orlando do your employees or sub contractor employees lowest wage get paid $40 per hour or around $90k for a single person?
.
A sawmill is closing down in Montana because its workers can’t live anywhere near. All $1mm units being built. Town won’t allow smaller lower cost zoning.

My point is define Relatively what circumstances are you inferring?
0 Reply
Dennis Bragg
San Diego, CA · Member since 2024 · 88 posts · 67 votes
1y
Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
1y
@Devin James I don't know anyone that wants to live in a crammed in shoebox. Regardless of price. There are always other options.....if a person's price-point is, let's say, $150k, they can either live in a shoebox downtown or move 20-30 miles out of the city and find a much larger house for the same $$.

The problem is people are spoiled today as @James Hamling so aptly said.

And as @Theresa Harris noted, let's just mix it ip and provide all types of housing...let the markey determine what works.......
5 Reply
Devin JamesPro Member
OP
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
1y
Quote from @Dennis Bragg:

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

My first home here in Orlando had an ADU. Great use of space and provides additional income to offset the monthly payment.
Orlando, and many other cities, have a "missing middle" problem in regards to housing.
Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots.
There's a huge demand for Townhomes, Duplexes, Triplexes, Quads, and smaller multi's.
I love cities who can implement those micro communities. I can see the vision but they are not yet put to use here in Orlando.
[email protected]
0 Reply
Dennis Bragg
San Diego, CA · Member since 2024 · 88 posts · 67 votes
1y
Quote from @Devin James:

Quote from @Dennis Bragg:

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

My first home here in Orlando had an ADU. Great use of space and provides additional income to offset the monthly payment.
Orlando, and many other cities, have a "missing middle" problem in regards to housing.
Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots.
There's a huge demand for Townhomes, Duplexes, Triplexes, Quads, and smaller multi's.
I love cities who can implement those micro communities. I can see the vision but they are not yet put to use here in Orlando.

It's great to hear your first home had an ADU...those are game-changrs for both space efficiency and offsetting costs. You're spot-on about the "missing middle." I've seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes. They framed it as a way to provide workforce housing, and the project not only sold out but became a model for similar developments.
I read a piece in Forbes recently about how smaller multi-units are reshaping urban housing. In Omaha, smaller multi-unit builds with shared amenities like co-working spaces are cacthing on. People appreciate the balance of affordability and livability.
What’s been the biggest hurdle for Orlando in pushing these types of projects forward? Zoning issues? Or are developrs hesitant to take the leap?
1 Reply
Devin JamesPro Member
OP
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
1y
Quote from @Dennis Bragg:

Quote from @Devin James:

Quote from @Dennis Bragg:

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

My first home here in Orlando had an ADU. Great use of space and provides additional income to offset the monthly payment.
Orlando, and many other cities, have a "missing middle" problem in regards to housing.
Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots.
There's a huge demand for Townhomes, Duplexes, Triplexes, Quads, and smaller multi's.
I love cities who can implement those micro communities. I can see the vision but they are not yet put to use here in Orlando.

It's great to hear your first home had an ADU...those are game-changrs for both space efficiency and offsetting costs. You're spot-on about the "missing middle." I've seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes. They framed it as a way to provide workforce housing, and the project not only sold out but became a model for similar developments.
I read a piece in Forbes recently about how smaller multi-units are reshaping urban housing. In Omaha, smaller multi-unit builds with shared amenities like co-working spaces are cacthing on. People appreciate the balance of affordability and livability.
What’s been the biggest hurdle for Orlando in pushing these types of projects forward? Zoning issues? Or are developrs hesitant to take the leap?
Love to hear it!

Mostly zoning issues.
Specifically for us, we focus on the outskirts of Orlando. Many of our developments are turning unprofitable citrus groves into SFH's.
I do think there's a trend towards BTR (Horizontal Apartments). Here's a project we sold to Taylor Morrison that will have this new type of housing. Super cool apartment style living, but all one story.
[email protected]
0 Reply
Dennis Bragg
San Diego, CA · Member since 2024 · 88 posts · 67 votes
1y
Quote from @Devin James:

Quote from @Dennis Bragg:

Quote from @Devin James:

Quote from @Dennis Bragg:

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

My first home here in Orlando had an ADU. Great use of space and provides additional income to offset the monthly payment.
Orlando, and many other cities, have a "missing middle" problem in regards to housing.
Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots.
There's a huge demand for Townhomes, Duplexes, Triplexes, Quads, and smaller multi's.
I love cities who can implement those micro communities. I can see the vision but they are not yet put to use here in Orlando.

It's great to hear your first home had an ADU...those are game-changrs for both space efficiency and offsetting costs. You're spot-on about the "missing middle." I've seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes. They framed it as a way to provide workforce housing, and the project not only sold out but became a model for similar developments.
I read a piece in Forbes recently about how smaller multi-units are reshaping urban housing. In Omaha, smaller multi-unit builds with shared amenities like co-working spaces are cacthing on. People appreciate the balance of affordability and livability.
What’s been the biggest hurdle for Orlando in pushing these types of projects forward? Zoning issues? Or are developrs hesitant to take the leap?
Love to hear it!

Mostly zoning issues.
Specifically for us, we focus on the outskirts of Orlando. Many of our developments are turning unprofitable citrus groves into SFH's.
I do think there's a trend towards BTR (Horizontal Apartments). Here's a project we sold to Taylor Morrison that will have this new type of housing. Super cool apartment style living, but all one story.

Repurposing citrus groves into SFHs is a smart move...turning underused land into vibrannt communities. I’m also a big fan BTR developments, especially horizontal apartments. They offer renters a unique option that feels like home but without the long-term commitment.
A developer friend of mine in San Diego recently completed a BTR project on a former industrial site. I saw a report in Forbes about how BTR developments are shaping suburban rental markets. The concept of single-story units with private patios caught on quickly, especially among young families and empty nesters.
Do you think these horizontal apartments in Orlando could help bridge the gap for middle-income renters? Or are they more likely to appeal to renters in the higher-income bracket?
1 Reply
Devin JamesPro Member
OP
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
1y
Quote from @Dennis Bragg:

Quote from @Devin James:

Quote from @Dennis Bragg:

Quote from @Devin James:

Quote from @Dennis Bragg:

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

My first home here in Orlando had an ADU. Great use of space and provides additional income to offset the monthly payment.
Orlando, and many other cities, have a "missing middle" problem in regards to housing.
Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots.
There's a huge demand for Townhomes, Duplexes, Triplexes, Quads, and smaller multi's.
I love cities who can implement those micro communities. I can see the vision but they are not yet put to use here in Orlando.

It's great to hear your first home had an ADU...those are game-changrs for both space efficiency and offsetting costs. You're spot-on about the "missing middle." I've seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes. They framed it as a way to provide workforce housing, and the project not only sold out but became a model for similar developments.
I read a piece in Forbes recently about how smaller multi-units are reshaping urban housing. In Omaha, smaller multi-unit builds with shared amenities like co-working spaces are cacthing on. People appreciate the balance of affordability and livability.
What’s been the biggest hurdle for Orlando in pushing these types of projects forward? Zoning issues? Or are developrs hesitant to take the leap?
Love to hear it!

Mostly zoning issues.
Specifically for us, we focus on the outskirts of Orlando. Many of our developments are turning unprofitable citrus groves into SFH's.
I do think there's a trend towards BTR (Horizontal Apartments). Here's a project we sold to Taylor Morrison that will have this new type of housing. Super cool apartment style living, but all one story.

Repurposing citrus groves into SFHs is a smart move...turning underused land into vibrannt communities. I’m also a big fan BTR developments, especially horizontal apartments. They offer renters a unique option that feels like home but without the long-term commitment.
A developer friend of mine in San Diego recently completed a BTR project on a former industrial site. I saw a report in Forbes about how BTR developments are shaping suburban rental markets. The concept of single-story units with private patios caught on quickly, especially among young families and empty nesters.
Do you think these horizontal apartments in Orlando could help bridge the gap for middle-income renters? Or are they more likely to appeal to renters in the higher-income bracket?
100%!!

Im a huge fan of them

I think both - they will bridge the gap with middle-income renters and also appeal to the higher-income bracket. As you said, younger crowd & empty nesters
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Dennis Bragg
San Diego, CA · Member since 2024 · 88 posts · 67 votes
1y

Exactly!!
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