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> Except, in a competitive/expensive market, the developer will pick the high-rise (almost) every time when allowed by law. A developer will, indeed. More prof
by jjav 5y ago
> Except, in a competitive/expensive market, the developer will pick the high-rise (almost) every time when allowed by law.
A developer will, indeed. More profit. But an acre is small enough that it could just as well be a rich individual buyer, in which case they'll build what they like.
There's a half-acre plot for sale nearby for nearly $2M, I'm curious if it ends up being bought by an IPO millionaire to build a small mansion or by some developer to put up two-story apartments. Could go either way.
- bombcar 5y agoIn many markets there’s no choice - it has to be a single family home.
- icambron 5y agoI mean, it could; rich people do what they like. But would it statistical aggregate? I really doubt it. And do they want to live in that mansion surrounded by multi-unit buildings built by developers buying the nearby acres? Also seems unlikely.
- alistairSH 5y agoThat’s fair. Local to me, redevelopment of a lot with an existing SFH tends to be another SFH because of zoning (unfortunately - many of the lots would be perfect for a nice duplex or very small apartment block). Larger lots tend to be bought by corporate developers, both because they have the resources to develop it fully and also because they frequently have to battle NIMBYs for a while to get re-zoning approved (I tend to side with the developers, except when they buy parkland to develop, but that’s a whole other discussion).