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I don't quite agree with their position that a new stater home is "history". They certainly didn't get out of the box very far, if at all, in their assumptions. We have Enterprise Zones as well as other tax incentive areas that are quite attractive to builders in the lower price point homes. The deferment can be as long as 10 years on the investment which allows the builders to get into these specific areas, develop it, and then build it out. The idea and guidelines are directed to the builder for starter or first time buyer homes. Around here, you almost can't throw a dart at the city map and not hit an area designated an Enterprise Zone. They have fixed costs for permits which are generally in the 10 dollar range, will accept an engineers inspection versus city inspections, developmental taxes or costs etc. are all waived in these areas. There are guidelines but are directed to the starter home. There won't be any 3500 sq ft homes built in these areas, if you catch my drift. And strange enough, I've been meeting with my cousin who is the mayor of a medium size South Texas town that is wanting more builder involvement in their town as most folks are having to commute 40-75 miles to work there. Jobs they have an abundance, homes they don't have. We also secured this afternoon another water well for their city. It can take upwards of 10 years for the State to issue a permit to a city for drilling a well. We just by-passed all of that with the contract on an 8" irrigation well that meets the States requirements. We have their city planner looking at property for development and should be ready to go after the first of the year. So a starter home for the first time buyer is not history. You just need folks involved that aren't afraid to get out of the box and look farther than their nose.
I know that in places where people want to move, many communities have added fees to support building schools, libraries and transportation projects. It was regarded as safe as those who pay them aren't yet registered to vote there. In some cases the fees exceeded the land costs.
Another issue: it's easier to get higher end housing approved by local agencies.
I always thought that starter homes were not new builds, but "previously owned." A new-new house was something to buy later in life. Maybe this is a regional thing (I grew up in the Boston area).
I always thought that starter homes were not new builds, but "previously owned." A new-new house was something to buy later in life. Maybe this is a regional thing (I grew up in the Boston area).
In my own experience, it was the opposite. Our first 2 homes bought in the 1970s were new-new. The last 3 were "used". This was partially due, at the time, to used homes being out of reach financially (price + financing). New home builders were offering basic 800 sq ft 3 bed ranches at attractive prices and financing. Later when we had built up some equity, then we could look at larger used homes, and not have to add all the little things a new starter home lacks (mailbox, gutters, lawn, storm door, curtains, etc etc)
Having lived in IL and CO, and now in CT, it appears to me that the New England area has an abundance of small homes built in the 50s & 60s that fill the starter home market. Nearly all new home developments are McMansions.
Another effect on the new starter home market is the changing attitude of local zoning boards. In several towns around Denver, for instance, which allowed plain-Jane 800 sq ft homes to be built in the 70s, now will not. They require porches, gables, basements, 2 car garage, etc. (And the nearby established neighbors still complain)
I always thought that starter homes were not new builds, but "previously owned." A new-new house was something to buy later in life. Maybe this is a regional thing (I grew up in the Boston area).
That was my understanding, too, and I grew up in Ohio.
In my own experience, it was the opposite. Our first 2 homes bought in the 1970s were new-new. The last 3 were "used". This was partially due, at the time, to used homes being out of reach financially (price + financing). New home builders were offering basic 800 sq ft 3 bed ranches at attractive prices and financing. Later when we had built up some equity, then we could look at larger used homes, and not have to add all the little things a new starter home lacks (mailbox, gutters, lawn, storm door, curtains, etc etc)
Having lived in IL and CO, and now in CT, it appears to me that the New England area has an abundance of small homes built in the 50s & 60s that fill the starter home market. Nearly all new home developments are McMansions.
Another effect on the new starter home market is the changing attitude of local zoning boards. In several towns around Denver, for instance, which allowed plain-Jane 800 sq ft homes to be built in the 70s, now will not. They require porches, gables, basements, 2 car garage, etc. (And the nearby established neighbors still complain)
New 800 square feet homes? I don't think they even make condos that small around here. Also don't know of any new homes that do not have a mailbox' gutters, or a front lawn. Normally around here the front lawn is provided and the owner has to put in the back yard themselves. Then again all new developments seem to have mail box banks now with an entire streets mailbox's at the end of the street. I have never seen a home that did not come with a garage, and I am including Condo's into that. My parents first home was built in 1958. It was a 1,100 square foot 3 bed 2 bath home with an attatched 2 car garage. clothes washer in the kitchen, dryer was a line out in the back yard. My wife and I purchased our first home less than 6 years ago. It was built in 1962 and is I think 1,670 square feet, 4 bedroom 2 and a half bath, with a laundry room and attached 2 car garage. Our home was nearly original when we bought it, same cabinets in the kitchen and bathrooms. Only fixtures have been changed over the years. On my street many families bought these homes as starter homes. Then never left either. LOL
Most people that I know have started in a similar home or in a condo and then moved up to a new larger home.
I have never seen a home that did not come with a garage, and I am including Condo's into that..
It depends where you are. In south Florida most older homes don't have garages, usually only ones built in the last 20 years do. Every one has a driveway, but few homes have garages.
As far as smaller homes go, it costs so much to build a home nowadays that it's not worth it to build a small one and many towns have a minimum size that they allow to build. There are places where you can still buy a $50k older home in parts of Florida but your insurance company will tell you that if you have a mortgage it has to be insured for $100K which is the minimum rebuild cost if it's fully destroyed. And my insurance for my home costs almost as much as the yearly principal on the loan. But on the flipside my taxes are very low, I just bought the home a few months ago and when my Homestead Exemption kicks in next year my property taxes will be under $100 a year from my estimates at what my neighbors pay.
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