A Simple Guide To Teardowns

What Is A Teardown?
A "teardown" is a house that is removed from a parcel of land to clear the site for the infill construction of a new home. Why would someone pay hundreds of thousands, or millions of dollars, to buy a house, only to tear it down? The answer is that buyers are purchasing the "buildable lots" when the value of the lots is higher than the value of the houses that sit on it. The determining factor for the value of these lots is their location in highly-sought communities and near other more valuable homes.

What Fuels Teardown Activity?
The desire to live in well-established communities. More than 70% of the nation's largest cities have experienced net population increases during the last decade. There are a limited number of neighborhoods and suburbs that are coveted for their proximity to transportation, jobs, excellent schools, attractive tree-lined streets, public facilities and amenities like parks, libraries and shopping, and city-like downtown areas with cultural and recreational amenities. Most of them have stabilized in growth and are nearly built out, with relatively few homes for sale and even fewer vacant lots. With many people wanting to move into such highly-sought areas, but desiring newer and larger homes, the value of "teardowns" continues to increase.

Many Older Houses Do Not Meet Todays Standards For The Modern New Home

New home requirements continue to increase in size and amenities. According to the National Association of Home Builders, the average newly built home has 2,300 square feet of living space and comprises 3 bedrooms, 2 bathrooms, and a two-car garage. This is an increase of 53% from the average home size in 1970, and a 130% increase from 1950, when the average new house incorporated only 1,000 square feet., with 2 bedrooms, 1 bathroom, a small living room and a kitchen. Also, the list of desired features in new homes today includes such amenities sich as great rooms, gourmet kitchens, spa bathroom