I get asked that question from folks outside of our neighborhoods (Adonea, Cross Creek, Traditions), let alone from our neighbors. We all get excited when we see trucks moving mounds. The first question always is: Is it a grocery store?” (And yes, I am going to post the “Build to Suit” here as well….) Sorry, no store as of yet. If an anchor store is inked, with the developer and a chain, I will let you know as soon as I find out. J
So, what do we know about new construction?
The first thing you will find out is that new construction takes time. Oh, now, the builders will tell you 6 -7 months dirt start (let’s be honest, delays due to weather, building materials on back-order, etc. Your delivery date can easily be pushed out 2 to 4 months, to go from 6 months to 9 months to 1 year!!! We are seeing delivery for most new builds at around 11 months.
But does new construction negatively impact the neighborhoods around it? Well, not as a rule of thumb. According to the Journal of Housing Economics…
”The results indicate even atypically large new houses command a premium. Construction of houses of average size relative to the reference group has little effect on existing house prices except to create some competition for houses that were achieving relatively high prices considering their attributes. Meanwhile, construction of a concentration of larger than average size houses exerts a small positive effect on existing house prices, especially for those houses that are selling for a relatively low price. The effect is the strongest when the new construction is located within one-quarter mile”.
They go on to say: “New buildings can have positive spillover effects on existing neighborhoods through a creating more vibrant neighborhood as vacant lots are populated. If vacant lots create external diseconomies through attracting dumping, allowing criminal use, or creating an eyesore, then building new houses will eliminate the external diseconomy, increase resident population, improve the aesthetics of the area and raise surrounding property values.”
So, new construction impacts, according to this study, in-so-much as they are competing inventory for those trying to sell their existing homes. I will tell you that homes taking close to 11 months for delivery is really not much in the way of competition for you.
As long as the market holds, it may be a positive for all parties!
I have attached The Season Collections and collections from Oakwood (Carriage House & Park House ) so you can see the prices and square footage.
It will be great to see further development (done sensibly of course).