Teardown Post

In my neighborhood, I’ve recently watched at least five run-down, but decent homes be torn down and replaced with large new houses that dwarf the small Craftsman homes that surround them. And I’m certainly not alone: This “teardown” phenomenon is increasing across the country.

Wherever you stand on this contentious issue, there are specific reasons why it’s becoming more popular to tear down and rebuild than to buy an already built home. As Real Estate Guide contributor Cher Wyskielof Teardowns.com noted in her article, The Teardown Page, there are two main reasons for this phenomenon:

1. The desire to live in well-established communities is increasing.In coveted communities, homes for sale and vacant lots can be hard to come by. With more people clamoring to move to these communities, and looking for newer and larger homes, more of them are turning to teardowns.

2. Many older houses do not meet today’s standards for the modern home. Fueled by demand from homeowners, the size of the average newly built home has increased 53% since 1970. These new, bigger homes also have different amenities than the homes of old: great rooms, spa bathrooms, multi-car garages. 

Yes, but are teardowns good for the community? Well, this is up for debate. The articleargues that teardowns are good: They frequently breathe new life into old neighborhoods and discourage suburban sprawl. But shouldn’t these old homes be preserved? In her own words, Cher says, “Local government, residents and other non-profit organizations are working closely together to ensure that truly historic homes are preserved and maintained and that zoning regulations guarantee the scale compatibility of new construction to the existing historic neighborhood.”

Yet skeptics, such as the National Trust for Historic Preservation, say that teardowns decrease livability and destroy the historic character of old neighborhoods.

It’s an argument that can be fought from both sides with passion. It just all depends which side you’re on.

Reprinted with permission from Zillow.com

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Last week, the city of Minneapolis tore down the duplex at 2914 Dupont. It had been condemned since 2006, cracked by flames and blackened by smoke, and sat kitty-corner across from Larson. It was the first home to be razed as part of a Minneapolis-Hennepin County partnership to rid the city of burned-out, blighted properties, the majority of which are on the north side. Two doors down from 2914, another home waits on the demo list. That one is scheduled to turn to dust in the next two weeks.

So far this year, the city has razed 21 homes. With a $1.25 million grant from Hennepin County, it hopes to demolish 100 in all by the end of the year. Since 2005, home demolitions by the city have increased a whopping 95 percent. City officials say the increase is directly attributable to the foreclosure crisis.

Like many streets in north Minneapolis, the entire 2900 block of Dupont has been under attack for years: First by drugs and crime. Then by foreclosures. Then by arsonists. And now by the implacable arm of a Bobcat.

Read full article.

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The housing market in Naples, Florida which had been pleading for signs as well has indeed received another sign that things are definitely getting better. Lot sales. In Naples not only lot sales are a sign and the purchase of “Teardowns” are way up, which in this upscale market is the same as a lot sale. A teardown in Naples is a home built primarily in the 1970s, with limited square footage, approximately 1,500, with outdated features and amenities. The home will be torn down, and a new home built. These sales which do not appear as lot sales are sold for lot value. The typical Naples homebuyer looks for a home with the newest features, granite countertops, marble flooring, much more square footage, media rooms, island kitchens with top of the line appliances and much more natural light. Thus on the same lot where there once stood a 1978, two bedroom, two bath home, you will find a year later a two story 4,000 square foot, 4 or 5 bedroom, 4 bath, plus den, plus media room, gorgeous new home.

Another very positive sign is not just that the number of lot sales and teardowns has increased it is important to note who is purchasing. Not only private parties, that are purchasing to build their dream home, but many builders, who held off buying for two years have now jumped back into the market to build spec homes. Specifically, the very attractive area, a corridor known as West of U.S. 41, within a stones throw of the Gulf of Mexico, has displayed a huge upswing in lot and teardown sales.

Full article

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While talking with friends in UAE today, we touched on the topic of real estate development and investment in Dubai. After our call, I did a little more research online and checked out various articles. Apparently, the Dubai market is still quite vigorous and new developments are selling and leasing very well.

Another telling sign; according to Khaleej Times Online, there was more than 6 million tons of construction waste in Dubai over the first half of 2008, double the amount accumulated throughout all of 2007. Also, UAE’s first construction waste management plant opened in May of this year.

While nothing is confirmed yet, friends are doing a great job of putting both pressure and guilt on me to visit early next year. I admit I don’t enjoy the idea of a 14 hour flight, but I am rather intrigued by all of the things I’m seeing and hearing about UAE, especially with regard to real estate.

Here’s an address to an interesting blog about Dubai real estate development with some great pictures!

http://desinotes.com/a-glimpse-of-the-real-estate-development-in-dubai

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Here is a bit of interesting data about how the Fairfield, CT beach market has been performing. There is no mistaking that the numbers say something. To me, they say that if you want to “reach the beach”, there may be some great opportunities to be had down there. We’ve sold teardowns in Fairfield beach, and the area has definitely seen quite a bit of new construction activity.

Bring your beach chair - & your checkbook

Popularity: 54% [?]