Interesting analysis. I biked through Caraleigh Commons last weekend and it seemed there were at least 4-6 houses there under construction. Their website shows a Phase 2 section that won’t be available until 2025 - presumably waiting until prices escalate even further.
We’re in the SW CAC just outside the beltline and have seen a similar trajectory in our home value over time to what you describe in your blog post. Since 2003 the value has slowly plodded along, gradually moving slightly upwards. Then in the last 2 years it’s almost doubled.
At least “Raleigh” is #2 by sheer number after Apex, I guess. And has the most commercial permits (by quite a bit actually; more than 3x as many as anywhere else). I wonder if “mixed use” gets counted in both categories? Also, is this total number of permits issued, or domiciles? i.e. does a permit for building with 120 condos vs a permit for a sfh both counted as 1 permit?
That’s a really good point. Do 425 apartments at Peace count as 425 permits or not? The heat map shows that downtown’s permits are weighted on the east side of downtown, indicating that it might mean that multi-family is permitted singularly.
I don’t get why one of the nicest, most desirable areas must have ‘equitable’ housing.
I just don’t get it.
And that’s why these marquee projects keep getting dragged down with liberal demands for ‘equity’ and ‘affordable housing’ amidst million dollar housing.
There’s plenty of places in the lower tier of pricing for people to choose from. So why do the rich areas have to have ‘equitable housing’ like stated in this article?
Are we talking about general opinions and goals, or are we trying to force govt policy to enforce equity?
Should our concerns be more focused on creating affordable housing in expensive neighborhoods, or should they be more focused on our affordable neighborhoods rapidly becoming less so with high priced gentrification?
Regarding duplexes and multifamily being replaced in “Glenwood”, even when like for like, they will never be affordable without serious subsidy due to land costs alone.
As for where the the real affordability issues are, take a look at this listing: 562 New Bern Ave, Raleigh, NC 27601 | Zillow
The shaming of “Glenwood” at this point is a bit perplexing when juxtaposed against what’s happening to Raleigh’s recently affordable areas downtown. So you want to live along the proposed BRT? Cough up 9 big ones.
That’s Joe Kwon from the Avett Brothers house. He spent a good amount of time designing that house I’m curious why he’s selling after only 4-5 years. I wouldn’t be able to function without a garage so maybe that had something to do with it.
I agree that it’s priced higher than expected, but this is a home built to a much higher standard than developer/contractor spec houses. Mid-range architect-designed modernist houses these days are usually built for around $250/sf, and that’s before considering land cost, design fee, and appreciation.
For what it’s worth, there’s also a huge premium given to award winning houses. This one was designed by Raleigh Architecture Company and won the most prestigious design awards in both the triangle and the state. In Situ Studio’s 2800sf Swain Residence went for its asking price of 1.2 million a few months ago.
In my head I was just mostly comparing it to my own place which is about the same size, architect designed, better(?) location… yada yada yada…but not nearly as valuable; are people just overpaying for modernist homes? I guess if they’re holding their value they’re not overpaying. Million dollar home on New Bern Ave would have been a thing a crazy person says just how many years ago? 10, 15?
It’s still wild to me.
I hear you; it’s crazy that these kinds of houses are being built where they are. But I guess I’m just trying to explain what’s driving the cost. It makes a lot more sense when you break it down.
Take the Swain Residence. The lot itself is valued at 270k. The construction cost, assuming $250/sf, would’ve been 700k. So you’re looking at nearly a 1 million dollar initial investment on a 2800 sf house. Modernist houses like this are expensive to build. Those huge panels of energy-efficient glass cost $$$, as do the efficient envelope and HVAC systems, the custom fabricated metalwork, solar panels, elevator, and the high level of finish required for a trimless/minimalist interior.
You can build a modernist house for cheap – see the Chasen Residence which was built for $120/sf, but it also used really simple materials, and a lot of the interior was salvaged. I also think this would be much more expensive if built today.
Yes, people often think “I don’t want any trim or custom millwork, so that should lower my price right?”. Less in trim, but more in drywall and potentially framing details to ensure a crisp finish without the mask of trim. Why do we have shoe molding? Because it’s nearly impossible to install hardwood floors perfectly flush against drywall without leaving an eyesore uneven reveal along the edges, and shoe molding covers it up. But people don’t want quarter round shoe right now, it’s out of style. Also, modern is trending and what’s trending usually commands a premium
