Quote:
Originally Posted by foreverrushing31
When was the 9 Hundred originally built? Seems like we might be getting to the point where 2000s-era West Campus buildings will be redeveloped. That's awesome as it opens up several new possibilities for taller towers that are not just underdeveloped properties
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2003.
This is actually NOT a good thing for market dynamics. It means they we are not providing enough envelope for developers to work within to create meaningful units in the right places.
In the short to medium term, new units raise prices. Why? Because they often replace cheap units with units that
start (even the “affordable” ones) at higher prices (something the envelope problem exacerbates, fwiw).
If structures are not allowed to survive through 5 development cycles (~75 years),
the city will only ever experience the short and medium term upward pressures on rent, compounded one accelerated cycle after another, and because developers are forced to target 20 YO buildings, that submarket then never experiences the long term downward pressures on rent that aging (30+ YO) properties exhibit.
Solution: expand the area developers can play with to ease development on existing affordable units.
• Heritage needs an overlay;
• Hancock needs an overlay;
• Blackland needs an overlay.
Single family homes in these neighborhoods need to transition NOT to HOME-style tri-SFH lots, but to WC-style urban housing. That requires overlays under current policy.
One saving grace:
MOST of the structures currently being built in this submarket will almost certainly survive thru the long-term, which is phenomenal because it does mean prices will eventually be affordable, IF supply keeps pace with demand. That last part is key, and why I think overlays on parts of the three neighborhoods I mentioned are necessities.
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