Cohousing-L Mailing List: Re: Cohousing -- Below Market Rate??

[Elizabeth Magill (pastorlizm]

Because home prices are compared based on similar homes and cost per square 
foot I can't think of anything that would make cohousing homes below market 
rate. For example, we made smaller homes, so market comparisons essentially 
compare our 3BR homes to other 2BR homes. We made attached homes, which saves 
money, but makes us comparable only to attached homes.

You do make choices in building that may cost more or less, but for example 
choosing energy efficiency (we aimed for "super-insulation") means additional 
cost. As Sharon said the home is "richer" rather than cheaper.

AND THEN the thing that matters most is what happens to the market between when 
you agree with the contractor about the cost to build, and when you sell. If 
home values soar, voila, you have below market rate homes (and have to be 
careful to get coho folk, not just folk loving the price.)

If home values drop, voila, your "market rate" homes are now comparatively 
expensive. 

By the time we were done construction our "affordable"  homes cost more than 
the same home nearby that had been foreclosed upon. 
Our market rate homes were badly "over-priced" meaning only that the amount 
we'd planned to sell them for was more than other homes of the same SF.
Some of our homes sold for half our planned cost.

Home prices are one of those truly capitalist things--the home sells for 
exactly the amount a person is willing to pay for it.

-Liz
(The Rev.) Elizabeth M. Magill
www.ecclesiaministriesmission.org
www.mosaic-commons.org
Berlin, MA
508-450-0431




On Oct 14, 2015, at 2:59 PM, William New <wnew [at] stillcreek.net> wrote:

> 
> 
>> On Oct 14, 2015, at 6:16 AM, Nancy Baughman Csuti <nancycsuti [at] 
>> gmail.com> wrote:
>> 
>> [those] interested in cohousing are looking for below market rate housing 
>> and see cohousing as a possible way to get there.
> 
> Wherever US/CA cohousing exists or is built, does it in fact sell *below* 
> market rate relative to comparable residences within the surrounding 
> community?
> 
> That is not our experience across the greater San Francisco Bay Area, where 
> all housing prices are near record level, due to the high price of land and 
> development costs, as well as limited inventory of existing housing for sale. 
>  
> 
> === Bill
> 
> William New
> StillCreek Commons
> 94062-0951
> 
> 
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