Goodbye McMansions, hello starter homes? Don't bet on it
Yes, prices are certainly falling now here in Massachusetts, the land of perpetually overpriced homes.
But don’t get the idea that it’s a picnic out there for buyers, especially first time buyers.
The fact is, even during the boom not a whole lot of new housing was getting built. And what did get built too often turned out to be either retirement communities, deluxe condo developments, or ugly and obscenely overpriced McMansions.
A recent conversation I had with a banker on the South Shore got me riled up on this subject.
He was clearly surprised after spotting a trend that seems very out of place for our beloved state, especially the eastern half.
Builders are starting to snap up cheap lots and taking out $250,000 to $300,000 loans to put up starter homes, such as raised ranches.
Starter homes in Massachusetts? Who knew.
Of course, the sad part is that town officials are not exactly welcoming these new homes. Instead, developers are having to build on odd lots here and there, our friend reports.
Still, the fact that this is so surprising is rather pathetic, is it not? This is the kind of development that happens – or was happening – routinely in many other parts of the country.
Of course, the apologists will claim we are land starved. Sure, we are not Texas here, but there’s still is land to build on.
More to the point is the anti-family-and-children attitude of many small minded local officials, who see only rising school costs and taxes.
That’s even before you get to towns taking each other to court in spats over proposed housing developments that happen to sit on their borders, as the Globe details in this story.
Maybe this crop of new starter homes my banker acquaintance is pointing two, a couple dozen homes in the Plymouth area, will be the start of a new and badly needed wave of starter homes.
I’m skeptical that local officials will let it get that far, but we’ll see.
Comment
Permalink
Email
If these houses are new, they're going to be expensive, even if they're relatively small. I'd rather take the house from 1925 that is built well and is on a nice, level lot in a nice neighborhood. By the time I revamp the kitchen and bathroom, I'll probably have paid around the same amount as if I had bought the new home on the triangle lot at the intersection of two state roads.
I, for one, welcome more starter homes in the area. One of the reasons we're in this whole real estate debacle is because first-time home-buyers SKIPPED THE STARTER HOME and went on to something that was wildly out of their price range and/or need. The purpose of a starter home was forgotten completely, and substituted for the notion that "I want what my parents have, and I want it NOW, even though it took my parents 20 years of savings to get something similar." This notion is more blatantly seen in places like Las Vegas and Phoenix, but I can see it here in Massachusetts as well. Now we just have to have some starter home PRICES to go along with our starter homes.
Big houses, Hummers, and variety of other junk, have lost their luster for several years. The McMansion being a reflection oneself is also out of vogue as well.
For many housing will be viewed more as shelter and less of a means to measure self-importance. These changes are sorely needed and make for a better world.
I'm waiting for someone to start converting the McMansions into multi-family homes.
A condo and town house is a starter home. And raised ranches? Ugggg what the heck is that, it is one of the most poorly designed houses ever. Give me a nice multilevel home, the bedrooms should be separate from the living area. and if not I don't want to lose my basement and storage area to make it a living area. And riddle me this why do I see new construction so often with one car garages? What is the point? Even stuff built in the 90s or early 2000 with one car, really the days of one car families were pretty much extinct by that point. If you are gonna build make sure you have a 2 car garage, if looking at new construction I won't take a one car garage. If it is older I would consider it, since it was built in a different era.
We currently live in a tiny starter home that is, however, on a great lot in a great neighborhood. We have been weighing the pro's & con's of either moving to a home more suitable for a growing family or knocking down our starter for a modular raised ranch (which we view as being able to accomodate us for the forseeable future). I was curious to hear people's thoughts on this strategy and also their opinions/experience with modular construction. We have been quoted in the neighborhood of 200k for a turnkey job... Also, IMOP, having more starter homes on the market in this area is sorely needed and I think a lot of people would view these raised ranches as more than just starters...
I think there is a problem with the idea of a "starter home." People seem to think of these as places to get a foothold into the real estate market, sell after a few years, and then buy something bigger. That concept needs to go away. Unless you have compelling reasons for needing to own a place, it doesn't make sense to buy a place that you will grow out of in a few years.
I live in New York and plan on moving to the Boston area within the year. While I am probably older and more financially stable than most first-time home buyers, I am not interested in buying a place that will only work for a few years. The time, money and effort of buying and selling homes make such a purchase very unattractive. My parents have lived in their house for 20 years, why is it inconceivable that I would want what they have now?
Explain to me how a home that costs $250,000 to $300,000 just to build, before the builder even marks it up for a profit, qualifies as a "starter home?"
Ha Marcus, in a few years when home prices are back to mid 90's levels, a $300K home will be considered luxury.
It's all about zoning, and keeping families out. Many towns require large lots, which drives up the price of existing homes, and makes building anything very expensive. Multi-families tend to be 1-and 2-bedroom "luxury" units or 55+ housing. Many other towns have banned multi-family housing, which means McMansions are going to stay McMansions.
Families are leaving the state in droves because they aren't welcome. In 20 years, Massachusetts will consist of rich people, poor people, elderly people, and students.
in my town, the housing stock is over 90% single family homes, only two condo (very small older) developments, and senior luxury condos coming in. no rentals (except by people who can't sell and need out). there is a whole demographic missing from my town -- anyone who has left home and is single and between the ages of 18 and 30. no plans to build housing that would accommodate all walks of life -- divorced parents, young professionals, families starting out who plan to buy a house in town in a few years.
i think the town is making a mistake with this, but most of the folks living here really do seem to like it this way. we desperately need more starter homes and condos without age restrictions.
if people are leaving in droves, why can't I ever find parking in Boston?
Modular- Friends built a modular in Maine and I have been to the house if I hadn't seen pictures of it being assembled I would have never known that it was modular. My concern is while it went up quickly, how long will it take to demo and clean up the current house? I assume you factored into your decision making process the cost of moving everything out of the home and storing it for the length of time as well as the cost of putting your family into temporary housing. And if you currently have a kid or kids, will temporary housing mean a different school district for them?
This blogger might want to review your comment before posting it.
Recent Posts
browse this blog
by categoryINside Boston.com