Further proof that home-buying is increasingly for the wealthy

[Zorro]

A recent trend in home construction points to growing polarization in the market, as more new homes come with three-car garages than ever before.

Twenty-four percent of homes built last year had garages for three or more cars, according to an analysis of Census data by Robert Dietz, chief economist for the National Association of Home Builders. That is up from 16 percent of homes in 2010, and 11 percent in 1992.

But it’s not so much that Americans want larger garages across the board. Instead, Dietz says homebuilders are increasing constructing houses for older, more monied residents, many of whom have teenage drivers and value three-, four-car garage homes.

“We’re seeing a substantial change in the mix of buyers that builders are catering to,” Dietz said. “The key point is that there has been a significant amount of weakness for entry-level, first-time buyers.”

https://www.washingtonpost.com/news/business/wp/2016/10/27/further-proof-that-home-buying-is-increasingly-for-the-wealthy/

[Travis_0004]

1. Its not really that much more expensive to add a 3rd garage

It proves that most people building new homes are more wealthy, and I think thats true. Where I live, you can buy an existing house for cheaper than the price of building new. So the only people who build new are those that have the extra money to get what they want.

And once you have taken that step, why not get garage space for a 3rd car.

[Thor_MN]

9. One needs a lot big enough to build that 3rd garage.

I would love to have more garage space but the lot sizes in my neighborhood won't even support 2 car garages (early 60's development). It's not just the cost of construction. You are right that garage space is the cheapest per square foot to constuct, but the land that it is built on is just as expensive as the rest of the house.

[Mendocino]

2. But they will still fill their

garages with mostly worthless crap and park the cars outside.

[greytdemocrat]

4. LOL!!!

I don't know how many times I've seen that.

[X_Digger]

5. Here in Texas, the garage is often used as a game day gathering spot.

I have one neighbor down the block who turned her garage into a yoga studio.

Ours is a wood shop.

[Initech]

6. Rent prices in Southern California are completely insane.

Studio apartment: $900 / month
Luxury apartment: $1500 - $2500 / month
Condo: $250K
Single family home: $600K
House: $2 million

There really needs to be a cap put on rent and housing prices. It's beyond ridiculous.

[Grey Lemercier]

8. those rates are soooooo low compared to here in London

Also way below NYC, San Fran, Paris, Stockholm, Boston, Brussels, Amstwrdam, DC, etc etc

[bhikkhu]

7. Demographic shifts, young people want apartments in cities

and have less interest in houses in the suburbs. On average, urban areas are growing, suburbs not so much.

[pstokely]

11. that might become an issue when people have kids

that's when schools and space become issues for families, but they'll probably just buy an existing house

[bhikkhu]

13. Perhaps, that is what happened in my case

I lived in an apartment until I got married and my first kid turned 3.

But not necessarily - look at Seoul, for instance. People just live in apartments as a matter of "that's the norm". I wouldn't discount the possibility that things change and people change, and not often in an expected way.

[Lee-Lee]

10. I don't think that says much- most new home buyers don't buy new construction

New construction costs more and of course will be targeted toward those with more money to spend.

That said, it's probably more of a shift of tastes. People used to want bigger and more usable front porches and now the don't, people used to insist on a working fireplace in most places and now that's more rare, and a garage is as much about an activity and storage space for many families than it is about a place to park.

[dembotoz]

12. and yet we have large numbers of existing dwelings elsewhere way way underpriced

perhaps we need to make life in those places more attractive