Small Property is Beautiful - and Affordable Too!
Construction on multi-family units in the United States was up somewhat in January 2008, according to figures released by the US Census Bureau and the US Department of Housing and Urban Development. The level of starts in December 2007 for single-family homes was as low as it has been since 1991.
Compact property is the new trend in the cities
Home builders are encouraged with the slight increase in the numbers of people walking through their newly built homes. They believe the traffic hints that business may soon be picking up. David Seiders, chief economist for the National Association of Home Builders, believes the data indicate that home buyers are beginning to take a look at their options once more. And if they are looking for a place in the midst of a vibrant city center, they have a new type of option to consider.
It could be that perceptions of “the good life” are changing in the United States, as some home buyers are beginning to take the position that bigger is not necessarily better. Developers are taking note and playing to an interesting and growing trend in large metropolitan areas like New York City, Los Angeles and Seattle: teeny, tiny apartments and condos, running from 250 to 450 square feet.
Available space utilized to the max
They’re affordable, they’re cute, and for some buyers, these small units are just the right size. Because of their diminutive proportions, it is difficult to build luxury extras into individual properties, so developers are building amenities into the community instead, including film screening rooms, courtyards, and rooftop gardens. And the more reasonable price tag of a smaller home means that residents can afford to live close to the social and cultural heart of some of the nation’s most desirable cities.
Proponents of living small say it is entirely possible to create a comfortable, warm environment in a small space (see photos). It requires determination to reduce clutter and organize the space; the process starts with an inventory of possessions and the will to discard nonessential items. The end result can be perfection in miniature. Folks who love their down-sized living space do have a couple of cautions, however: these homes are not designed for entertaining, and they do not readily accommodate a family with children.
Smaller properties remain strong amid the American real estate slowdown
Real estate industry insiders expect to see fewer home sales and lower sale prices in California during 2008. Despite this news, prices for smaller, one-bedroom units in San Francisco have been rising pretty consistently since early 2003, and it appears that they continue to hold their own. In Manhattan in the early months of 2008, prices for smaller properties also seem to be on the rise. One positive note for sellers: real estate professionals suggest that the current weak dollar is encouraging more international buyers to invest in some of the city’s most expensive properties.
Apparently, many prospective buyers are discovering that lenders are reluctant to make loans. Still, one mortgage loan industry watchdog encourages people to take heart: some lenders out there are still making mortgage loans, and in fact, they welcome new business.
