4 ms·
Generally not the case in a lot of HCOL areas. For example in NYC, most new developments are built out something like this: 4 bedrooms - less than 5%, 3 bedroo
by steveBK123 3y ago
Generally not the case in a lot of HCOL areas.
For example in NYC, most new developments are built out something like this:
4 bedrooms - less than 5%, 3 bedrooms - 10%, 2 bedrooms - 30%, 1 bedrooms - 40%, studios - 15%.
As a result, the larger units are not just more expensive due to square footage, but the pricing scales non-linearly per square foot because 3+ bedroom units are a rarity. Typically you'll see a 3BR have 50% more square footage than 2BR but cost 2x the price.
It's not uncommon for people who have their first kid in a 2BR to then buy a studio or 1BR in the same building for their kids to play / grandparents to stay over, rather than selling and upgrading to a 3BR.. as insanely inconvenient as that sounds, due to cost.
- TylerE 3y agoSeems like an easyish solution would be to have some modular walls. Like imagine if you had a repeating layout like - [ 2br | studio | 2br ] where the | represent say a section of wall that is designed to be disassembled and removed. Then either 2br can be converted into a 3br by unbricking the doorway, so to speak. If neither 2br needs it it can be rented out on it's own as a studio. Or even take out BOTH walls and convert into a giant 4/5 BR extended family unit.
- steveBK123 3y agoI think you run into challenges there with minimum square footage & window/egress requirements per bedroom. The bigger issue would be plumbing for bathrooms & kitchens.
- TylerE 3y agoI'm still thinking each "sub unit" would be the usual typical hall entry / window bedroom setup.
- kayodelycaon 3y agoSome commercial buildings are designed to be renovated repeatedly like this. They have an open steel support structure where you can have an entire floor completely empty and add walls where ever you want.
- paulddraper 3y agoNYC is peculiar in many respects...sq ft cost, rent controls, affordable housing initiatives.
- steveBK123 3y agoAlso to be clear I am talking about condos and therefore sales. Condos can be rented back out, but the majority of large unit buyers are residents not investors. If you look at rental buildings the skew is far worse. There is a 500 unit rental building that opened near me 5 years ago with apparently no units larger than 2 bedroom. Another one with 325 units shows the same. And finally the most recent 605 unit building with, again, no units above 2 bedroom in size. To add insult to injury, many rental building 2 bedroom units are really configured for people to split with a roommate rather than house a family. So to have 3BR+ in the city you need to be wealthy enough to save up down payment money for ownership, and also have income to cover paying both a space and price-per-sq-ft premium.
- JohnFen 3y ago> There is a 500 unit rental building that opened near me 5 years ago with apparently no units larger than 2 bedroom. The three most recent large apartment (not condo) projects in my area were 50% 2 bedroom units, 30% three bedroom, and the rest 4 bedroom. No one-bedroom units at all. The takeaway I have from all of this is that this is something that varies quite a lot from place to place.
- marcinzm 3y agoNYC also has some very interesting tax laws. I believe nowadays you get a 35 year tax reduction if your condo building is not in Manhattan, has under 30 units and has an average unit value of under $1 million (technically it's $65k of assessed value which is around 6% of market value). That translates to maybe a 1 or 2 bedroom on average nowadays.
- JohnFen 3y agoThanks for the explanation. I suppose the economics of such places are very different from the rest of the nation.