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Where does a 2BR detached house fit into the picture?
Are these a good value for some or should they be avoided like the plague?
Compared to a 3BR, it will be cheaper to own, less overhead and taxes, and less to maintain than a 3BR
Most people have no need for a 2BR home, so demand will be much lower, and prices would reflect that.
But, a 2BR house may meet the needs of certain groups:
Single person, divorced person, or childless couple.
Family with 1 child wanting to trade off smaller house for better schools.
Maybe not empty nesters, since who would bother downsize from a 3-4BR house to a 2BR house?
Most people who need a 2BR seems to go the townhouse route.
Everyone knows the advantages of the popular townhouse: No maintenance, lower taxes, HOA services.
Do some people prefer a 2BR house over a 2BR condo?
More privacy? Some like housework and projects? Pets and gardening?
All depends here you're located. You can't give away a 2 bedroom house where I live. We have plenty of retirees and families. I have several retiree neighbors who moved here after retirement. Only one has a 2 bedroom house. It's a lovely house, but I think they will have a hard time selling it because other 2 bedroom houses on our street sit for months. There are a handful of 60's ranches that are 2 bedrooms here. They take forever to sell.
A 2 bedroom home doesn't mean it will be cheaper to own, less overhead, less taxes, less maintenance, etc. The square footage is really what determines most of those issues.
Townhouses don't necessarily have lower taxes. Everyone doesn't love HOA's.
I wonder, if at some point, these 4BR homes become become a negative, as boomers age out, and you have higher taxes, utilities. Homes over $1mm are always much slower to sell, where homes in the $5's sell quickly. At some point, this glut of McMansions may implode on itself, as Boomers downsize, maybe. People are having fewer kids and fewer people are getting married.
Again this all depends on location. In many communities, million dollar homes sell quickly because they are the cheap houses. Many boomers have long left their 4 bedroom homes. The generations after them also have families. It's not like boomers were the only ones to have kids.
Just because people are having fewer kids doesn't mean they need less space. It's me and my hubby. We each need an offie since we both work from home. I have a craft room because of my online business. We also need space fora. guest room. We also don't like being on top of each other and like larger rooms.
I know people who aren't married but live together. No need to be married to buy a house together.
That means CAN'T leave. I don't see it as being a desired 'choice' anywhere. Do you?
The term "boomerang kids" seems to more prevalent. And you're right, the "choice" isn't desired at all. Usually, kids desire to put distance between them, and their authority figures.
I would take a 2/2 over a 3/1 any day of the week. The pundits over generalize. Never buy a condo..but, what if land runs 30-50 million per acre? Never buy a one bedroom. But, what if you can't afford a two bedroom? Never buy a home, where land is cheap. Now that is something that would apply more universally, but even then, it works fine for many. Buying on credit necessitates being able to resale, but anyone, who watched values of 3/2/2 almost new homes lose 3/4 of their value in two years, in places like Florida, Arizona, and Nevada will tell you there are no guarantees.
All depends here you're located. You can't give away a 2 bedroom house where I live. We have plenty of retirees and families. I have several retiree neighbors who moved here after retirement. Only one has a 2 bedroom house. It's a lovely house, but I think they will have a hard time selling it because other 2 bedroom houses on our street sit for months. There are a handful of 60's ranches that are 2 bedrooms here. They take forever to sell.
A 2 bedroom home doesn't mean it will be cheaper to own, less overhead, less taxes, less maintenance, etc. The square footage is really what determines most of those issues.
Townhouses don't necessarily have lower taxes. Everyone doesn't love HOA's.
Could it be your local economy peaked 40-100 years ago?
Here is a 2/1 on a 4200 st lot. It was built in 1925, 900 sf, and needs foundation work. Owner turned down 1,000,000 cash, two years ago.
Let me guess - the house ^^^ is in California? Maybe Seattle or Long Island? I can't imagine anywhere else where a house like that would be worth more than $50K unless it's on the beach.
Could it be your local economy peaked 40-100 years ago?
Here is a 2/1 on a 4200 st lot. It was built in 1925, 900 sf, and needs foundation work. Owner turned down 1,000,000 cash, two years ago.
Yep, that shack isn't worth 25 cents, but the dirt. The dirt it sits on is worth whatever someone perceives it to be worth.
Those with money, might buy 3-4 houses in a row, bulldoze 'em all, and build their "McMansion."
Only if the location is desirable.
Berkeley, California. Not even in the hills, but the better side of town, where it still is not safe for women to walk at night. Way too close to the Hayward Fault, too. You get a three bridge view..(golden gate, San Mateo, and bay)..from the roof. The places across the street have bay views, and run hundreds of thousands more..but people just don't sell.
Well, the OP asked about "conventional wisdom" so I gave answers based on NORMAL housing markets, not insane unicorn places like Berkeley, where people pay insane prices to live in s&*$boxes because IT'S CALIFORNIA.
I once bought a 2 BD because it was freshly remodeled (owner had not lived in it since work was done), it was in my price range, and made the 1950's house feel brand new. It was truly turn-key.
In my observations, most everyone making the jump from renting to buying is doing so with family already in mind. Unless the market is absolutely oppressive for prospective buyers (a la Bay Area) the idea of buying a 2 BD is not even on the radar for most people, unless budget provides a hard limit and buyer is stuck between a rock and a hard place - literally between not being able to afford rising rents and not being able to qualify for a mortgage on a 3 BD place.
In buying mine, the lack of outside interest was ominous. It felt like I was about to make a bad choice. But for a household that would at most be a childless couple, it just made sense. About 30% less than comparable 3 BD properties. It allows us to save more and indulge more in other areas of life. It's on about an acre of land so plenty of privacy.
There are some newer developments being built not that far away where homes listed as "2 BD, 3 BA" (weird, I know) are going for north of $300k. I would question the numbers but several individual listings are written that way, 2/3. Curious if this is a retirement community.
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