We have all heard about the lack of inventory for the past several years and seen with our own eyes the rising cost of houses in our areas. But specifically this past year I have noticed that builders new in-fill construction and large mansion style homes are nearly always being listed at $2 million and above. Just today I got an invitation to an open house for a new construction home priced at $2,335,520.
If not above $2 million these new listings are in the high $1.7 million and above category. And it is not like these homes are hanging around either, they are getting snapped up by buyers looking to live in award winning school districts.
This also puts pressure on housing in the lower price points as builders are now looking for lots for future projects. So homes that would have been bought by homeowners in those lower price points are now getting squeezed out by builders purchasing to construct large mansion style homes as in-fill projects.
Whilst, it is perfectly allowable and whilst there is a market for these new homes I see this carrying on. But, is it good for the market and the towns and municipalities where this is happening.
Affordability is being eroded with each sale, and everyone is affected. What is the answer? I am not sure, maybe township planning boards need to stop issuing variances that allow these mega-homes to be built in neighborhoods of ranch and cape cod style homes just so that the taxes will increase. We need varied neighborhoods, filled with a variety of different style homes for everybody, school teachers, firemen, nurses, township workers and everyone else. We do not need neighborhoods filled with homes just for the mega-rich and everyone else is pushed further and further out needing to commute long distances to do their jobs.
So, we will see how long this keeps happening, but I hope soon townships will come to their senses and make better choices at zoning hearings.
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