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Zoning for Affordability

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Services for Real Estate Pros with Wellsco Realtors LLC

Zoning and Building for Affordability

Let’s start with what Chapter 40B, our affordable housing statute, requires:  That the affordable units (25% of the total units) be equivalent in nearly all respects to the market priced units..  That means that the developer of a 20 home 40B project cannot skimp on the 5 (required) affordable units in size, appearance or location (he can use less expensive finishing materials).  Thus the affordable units do not stand out, our shortage of inexpensive homes is helped.

Are there other ways for individual towns to encourage less expensive housing?  Of course there are – the demand is great for homes that may not fit the State’s description of “affordable”, but are far less expensive than the 3000+ sq foot homes being built to cover the cost of the lot.

Here’s one:  Create zoning to allow two homes instead of one on lots of, for example, greater than one acre, with the caveat that the homes built under that zoning a) may not exceed a certain stipulated price, and b) have a stipulated maximum square footage.

Why would this work?  Consider that an average lot here on the North Shore costs about $200,000.  Building costs are minimum $120 per square foot, not including site work and overhead.

A builder could chose:  Build one house, say 3000 square feet, or two houses of 1500 sq feet.  Do the math:

Land $200 plus 3000 sq. ft. x 120 = $560,000 before overhead and profit, so the builder needs to get over $700,000 for the finished house to make it worth his while.

Divide the above by 2 or two houses and we have less than $400,000 per house.]-->

What do you think serves our needs best:  Two houses on ½ acre lots for $399,000 each, or one house on one acre for $739,000?   Not only do the less expensive homes fill a huge gap in available new home prices, but they will also sell much more quickly because of need.  Everyone wins, except those of us who don’t want two smaller houses in our exclusive McMansion neighborhood.

Let’s also consider the design of the living space.  How much of the 3000 sq. foot house will actually be lived in?  The formal living and dining rooms are rarely used, and at the cost of construction, are they really worth the money?  Not only that, but by demanding more rooms we demand more isolated “boxes” in our house, great if you love that tight, walled-in feeling.  In fact, by designing homes based upon our lifestyles and actual space needs, we will experience much more open architectural styles and – because of fewer walls and less wasted space – less expensive construction.

The spaces we live in have an enormous influence on our health, happiness and productivity.  For years architects have been focused on designing better living and working spaces, but too many builders ignore them because – as some have told me – “Why build anything different when the houses I now build sell anyway?” 

In today’s market these short-sighted builders, thankfully, are being left behind by the thoughtful innovators who see the big picture and realize that the days of selling everything they can build are over.   They have to build better and smarter to succeed.  Let’s be creative and give these people the incentives and tools to build an environment that is environmentally, financially and emotionally healthy, and makes sense for the future of our communities.

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John P. Wells resides in Newburyport, MA.  His 16 year career in real estate varies from buyer representation, listing agent, development and planning, and adult community design.  His interests in architecture and construction are invaluable to his clients.  His true interest in helping and guiding others contributes greatly to the enjoyment that his clients experience in the real estate process. 

John has a serious background in marketing and has learned how to use the internet to build his business and sell your home.  Check out his series of websites through HappyInNewburyport.com.    You'll find client reviews, links to his other community websites and everything about living in Newburyport right there!

John invites you to create your own Property Finder account at http://www.mlspropertyfinder.com/login.asp?agentid=BB700224

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