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However, with the smallest one at 300 sq. ft. and selling for $120,000, that comes to $400 per sq. foot and I'm not sure how you'll convince people that is a "deal"!
The deal, for those inclined to the idea, can't be considered by the more traditional rubrics like per SF price. The whole point of it is turning those notions on their ear.
If the structure were twice or more as large it would still have virtually the same costs for everything associated with construction (land & site work w/ utilities, mechanical plant, foundation, roof, kitchen, bath, etc) as exist by having those contractors on site to make the smaller space.
That additional living area, incorporated as larger room areas and framing in a proper bedroom (or two), would be nominal difference in cost.
There are small homes on small lots everywhere in the US. They are called mobile home parks. They just happen to house people on the lower end of the income scale and are mostly invisible to many people like the writer of the article. The size of the house may be a little bigger with a mobile home then the houses in the article, but the lots (especially in parks where you are renting the real estate) are often really small. They are still basically a "single family" dwelling. The "density" may be quite high in some parks.
What may be "new" is getting higher income people into smaller houses. People who have far more choices when it comes to housing. My guess is that few people are "choosing" the mobile home park over something else outside of maybe an apartment. This developer is competing for buyers who may be considering a larger more conventional houses.
So they make that small house far more fancy and expensive to attract those buyers with choices. The higher price will keep out the riff raff. It could be a fine niche market for a handful of builders, but it will likely remain that.
I would make a remark to people who think that very small single family houses would not be as good as a condo or multi-family housing. I think there may be a larger market for the small footprint, small lot (at least in size with the condo) for more middle income people (The ones in the article are too expensive for most middle class markets). Many people who live in multi-family housing are poor candidates for them. They are inconsiderate of their neighbors, are too noisy, or are too messy etc. They would be far better off in a small single family house. There are far too many people in multi-family housing who would have preferred and would be better off in a single family house.
Interesting. I am the owner occupant of a 400 sf sfr in Mid-town Phoenix. It was built in 1946, so this is nothing new. I have a 7244 sf lot. If I needed storage, there is a storage facility 600 feet from here that charges 25 per month. My last electric bill was 21 USD. I have a full size kitchen and bath, but the LR and BR are only about 10 x 10. I actually think large houses are the new white elephants--and the exurbs, forget about it. I think half of the people in the nearest 4 story apartment building would rather be in my place, let alone pet owners, people without cars, etc...
they pay 700 per month to listen to footsteps above them, and people pounding on the cieling below them. I paid 18,500 cash last November--don't miss the HOAs and the dog ****e piles and the people that throw their garbage towards the dump, but not in it. I also have a nice 6 foot block wall on three sides of me, and my main shade tree is actually a four story bank headquarters across the street.
Interesting. I am the owner occupant of a 400 sf sfr in Mid-town Phoenix. It was built in 1946, so this is nothing new. I have a 7244 sf lot. If I needed storage, there is a storage facility 600 feet from here that charges 25 per month. My last electric bill was 21 USD. I have a full size kitchen and bath, but the LR and BR are only about 10 x 10. I actually think large houses are the new white elephants--and the exurbs, forget about it. I think half of the people in the nearest 4 story apartment building would rather be in my place, let alone pet owners, people without cars, etc...
they pay 700 per month to listen to footsteps above them, and people pounding on the cieling below them. I paid 18,500 cash last November--don't miss the HOAs and the dog ****e piles and the people that throw their garbage towards the dump, but not in it. I also have a nice 6 foot block wall on three sides of me, and my main shade tree is actually a four story bank headquarters across the street.
Paying $18,500 cash sounds great. I'm not against smaller spaces...I'll be downsizing as soon as my last child goes off to college. I would love a smaller space, single family and like you, I like the price tag of $18,500!
However, if my clients come to me with $120,000, most want either a townhouse or a small (1200 sq. ft.) home with a garage. What would be the advantage of 300 sq. ft. for $120,000 when they can get 1200 sq. ft. for the same price?
I understand lower utility costs, lower taxes, etc. but I just think the prices would have to be much lower on 300 sq. ft. than $120,000, in my area. I can only speak for my area and my buyers.
In my case they would be getting the 7244 sf lot, but in these advertised......they would be getting no one above or below. I'm not that familiar with Portland, but I know it is more like the NoVa Market I do know. 1200 sf TH with a garage would run from 240K in West Springfield to 600K in North Arlington, and there, I believe there would be takers of these homes from DR Horton. The next wave of home construction will most definitely be in-fill.
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