Housing conundrum (Philadelphia, Lancaster, Chester: fit in, apartments, HOA)

[1ondoner]

Has anyone else noticed that the only new construction in the suburbs are apartments or $700K plus McMansions.

There seems to be a dearth new construction starter single family homes which will make it hard for people to get onto the property ladder unless they are willing to overpay for the limited inventory at the median house prices.

Main Line apartment boom: Why so many?

[NewtownBucks]

Originally Posted by 1ondoner

Has anyone else noticed that the only new construction in the suburbs are apartments or $700K plus McMansions.

There seems to be a dearth new construction starter single family homes which will make it hard for people to get onto the property ladder unless they are willing to overpay for the limited inventory at the median house prices.

Main Line apartment boom: Why so many?

There are plenty of starter homes, just not new construction. The HOA where I live was built in the early 1990s and has units ranging from 150k 2br condos up to $600k 5 BR houses. There's no demand for or profit in new construction on 300k houses.

[Patmcpsu]

Originally Posted by NewtownBucks

There are plenty of starter homes, just not new construction. The HOA where I live was built in the early 1990s and has units ranging from 150k 2br condos up to $600k 5 BR houses. There's no demand for or profit in new construction on 300k houses.

Exactly this. I would not buy new construction from a "value" brand even if they existed; it's hard enough to get passable quality from a "luxury" homebuilder these days.

Your best bet is to buy something a bit older; there has been a ton of homes built ~20 years ago, in Chester County especially. These houses are modern-enough and built prior to the McMansion trend. The only reasons why I would get new construction is:
1) You don't want any maintenance/upgrades yourself, and willing to pay a premium beyond what it would have cost.
2) You absolutely need 10-12ft tall ceilings.

[Flyers Girl]

I agree with the above two posters. By and large, developers don't build starter homes, unless they're in subdivisions that have a mix of everything - attached or clustered townhouses all the way up to 4-5 bedroom single McMansions. The first home I owned (on the Havertown/Drexel Hill border in UD Township) could be considered a starter home. I bought it in 2006 for under $200K. It was a 3-bedroom, 1-bath twin. Not a lot of land to maintain. Perfect for one or two people.

As for the article you linked, the apartment boom that is happening in the burbs (see Ardmore as an example) is, I think, largely due to millennials choosing to move out of the city but not being ready to purchase just yet. They want to live in a place that has at least some of the same vibrancy of the city. Perhaps they work in the burbs and want to lessen their commute while not living in complete "suburban hell." Just my $0.02.

[DXBtoFL]

It has everything to do with land supply. You can find affordable new construction - in Lancaster County.

Closer in, shrinking land supply means the value of land increases and at that point it's only economical for developers to build more expensive housing. There's also plenty of affordable older housing closer in to Philadelphia so what's the point of something new, because at that price point (sub 500k for brand new) you're getting a shoddily built house with Home Depot trim.

[kyb01]

Originally Posted by Flyers Girl

I agree with the above two posters. By and large, developers don't build starter homes, unless they're in subdivisions that have a mix of everything - attached or clustered townhouses all the way up to 4-5 bedroom single McMansions. The first home I owned (on the Havertown/Drexel Hill border in UD Township) could be considered a starter home. I bought it in 2006 for under $200K. It was a 3-bedroom, 1-bath twin. Not a lot of land to maintain. Perfect for one or two people.

As for the article you linked, the apartment boom that is happening in the burbs (see Ardmore as an example) is, I think, largely due to millennials choosing to move out of the city but not being ready to purchase just yet. They want to live in a place that has at least some of the same vibrancy of the city. Perhaps they work in the burbs and want to lessen their commute while not living in complete "suburban hell." Just my $0.02.

Well, we'll see. I was in Ardmore yesterday and the development is impressive. It will attract some Mills undoubtedly especially when their kids hit school age. The vibrancy factor has a ways to go though.

[b-nasty]

Originally Posted by 1ondoner

Has anyone else noticed that the only new construction in the suburbs are apartments or $700K plus McMansions.

In addition to the land cost, you can also thank your local governments for making the build process so expensive. Take a look at a local township website and look over the amount of surveys, studies, and permits required to build a house. Add on top of that utility connection fees and high labor costs, and it just doesn't make sense to build a <$400K house on a nice chunk of land. The builder would rather throw up 60 townhouses (sorry, carriage homes) on 2 acres to maximize profit.


Not to mention that most people *say* they want a starter home, but then the HGTV kicks in and what they really want is a spacious, 2800+sq/ft, 4/3 with modern, high-end finishes.

[southbound_295]

Originally Posted by 1ondoner

Has anyone else noticed that the only new construction in the suburbs are apartments or $700K plus McMansions.

There seems to be a dearth new construction starter single family homes which will make it hard for people to get onto the property ladder unless they are willing to overpay for the limited inventory at the median house prices.

Main Line apartment boom: Why so many?

It's a nationwide trend.