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Developers build luxury units not because constructing middle income housing not “economically viable” but rather because constructing middle income housing has

Developers build luxury units not because constructing middle income housing not “economically viable” but rather because constructing middle income housing has essentially been banned in most cities by modern zoning codes and building regulations. Most cities either allow new housing as a single family home or as part of a 25+ unit building with minimum space requirements and 2 parking spots/unit. These regulations (parking, unit size minimums, the nature of constructing a 25 unit building, scarcity etc) make the housing more expensive. Minneapolis has recently changed their city wide zoning laws to allow for 4 unit building city wide, which will allow for cheaper “missing middle” type housing (2 - 6 unit building w no parking) that used to be constructed across urban neighborhoods in the US. There are new 2br units in 6plexes in Portland selling for ~350k. It’s possible to create new housing for the middle class, we just need to allow it.

40acres 8y ago
Agreed, I live in downtown Portland and 3-5 luxury apartments have been built or are nearing completion within a 10 minute walk of my apartment. These all look like they can hold 100+ apartments, but are marketed towards yuppies and retirees. I grew up in a privately owned middle density (around 100 apartments) building, no parking but close to public transit and affordable for a wide range of income, it's baffling that more of these don't exist.
- davidw 8y ago
  Basically any new housing in a place with a housing crisis is "luxury housing". Definitely worth supporting legislation like HB 2001 in Oregon that makes it possible to build slightly less expensive housing in broader areas.
  - 0xB31B1B 8y ago
    It’s ironic because in SF, the majority of new units constructed are in the bottom 35% cost for their neighborhood
sologoub 8y ago
Completely agree! One caveat though - living in big coastal cities we get decensitized to costs. 350k for a 2br isn’t really affordable. Using the rule of thumb from 60s - if median income is ~60k, the affordable home should not be more than 3x that, which is $180k.

40acres 8y ago

Agreed, I live in downtown Portland and 3-5 luxury apartments have been built or are nearing completion within a 10 minute walk of my apartment. These all look like they can hold 100+ apartments, but are marketed towards yuppies and retirees. I grew up in a privately owned middle density (around 100 apartments) building, no parking but close to public transit and affordable for a wide range of income, it's baffling that more of these don't exist.

davidw 8y ago
Basically any new housing in a place with a housing crisis is "luxury housing". Definitely worth supporting legislation like HB 2001 in Oregon that makes it possible to build slightly less expensive housing in broader areas.
- 0xB31B1B 8y ago
  It’s ironic because in SF, the majority of new units constructed are in the bottom 35% cost for their neighborhood

sologoub 8y ago

Completely agree! One caveat though - living in big coastal cities we get decensitized to costs. 350k for a 2br isn’t really affordable. Using the rule of thumb from 60s - if median income is ~60k, the affordable home should not be more than 3x that, which is $180k.