[quote=Rustico][quote=CA renter][quote=bearishgurl]I don’t see land prices coming down in SD County. Firstly, we are running out of land (if we haven’t already run out). What is left are slivers of exurbs that will surely be encumbered by costly CFD’s, IF they are ever built on.
Secondly, am I missing something here? Why do first-time homebuyers expect to purchase BRAND-NEW construction? Where did this expectation come from? Even 1st time buyers in cheaper counties and states don’t expect to buy new construction. There is PLENTY of resale inventory in SD County on the market for a first-time buyer. A first time buyer with little down has to be able to ACCEPT what is in the resale inventory in their price range, rent or leave the county. It’s that simple.[/quote]
Land prices would come down if end buyers refuse to pay the high prices for newly-built homes. The market doesn’t exist in a vacuum, and prices don’t levitate all by themselves. The reason land owners can charge these prices (to developers/builders) is because buyers are willing to pay the high prices for the homes.
We are not “running out of land” at all. Just drive 30 minutes in almost any direction, and you’ll see nothing but land. Lots and lots and lots of land in California. It’s amazing how much empty land there is, actually.
There is an artificial scarcity because certain developers/builders have been allowed to hoard land. There is a perceived scarcity of land, not a real one.
I do agree with you about first-time buyers not need to buy brand-new homes, but realize that some first-time buyers are actually older, and are just now looking to buy after spending years in college and in building their careers. They should not have to buy worn-down junk in the barrio just because they are first-time buyers. There are many different types of first-time buyers out there.[/quote]
There is an effective scarcity of land. The dread of commutes would make this so on its own. Add density restrictions,a thousand other limitations and infrastructure costs associated with going into fresh territory and thousands of acres around the 30 minute drive are not feasible to work with, especially for affordable housing.
Hording land or better said “holding land” is what residential development is about. Developers buy land in anticipation of it being more productive in the future than would be if it were used immediately. There are always huge parcels or collections of parcels for sale to anyone who wants them. Even, you CARenter, are welcome to buy them up and horde them all you want…or, out of the goodness of your heart, use them to drive down housing prices until you are broke.[/quote]
As stated above, I think the large-scale developments (and land hoarding/holding) are a problem. It would be better for people to buy their own lots and build their own, custom houses. Custom = built to their own specifications, not “fancy.” (Yes, yours is a custom home.) 😉
