We Need Higher Density & Smaller Homes - Thoughts?

[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?

[JD Martin]

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.