Bob Mulder, former Chair of Raleigh’s Planning Commission and a Raleigh real estate professional, sent the following article to us and to the members of the Raleigh City Council.
We are publishing it here with his permission.
On April 5, 2023 Livable Raleigh published my commentary entitled “Supply, demand, and poorly focused density planning are causing a shortage of truly affordable housing – not zoning.” I clearly stated my opinion, and you can go back and read it if you feel necessary.
Recently, I came across an article written by a well-known real estate appraiser in the real estate profession by the name of Richard Hagar, SRA. If you would like to know more about Mr. Hagar click on this link: Richard Hagar Real Estate Appraisal
The article he wrote in Working RE Magazine is entitled “The Attack on Single-Family Zoning”.
A short quote from the article follows:
I have experience valuing homes that are next to duplexes, fourplexes and apartment buildings; I see what’s happening in these neighborhoods. Once zoning is changed from single-family to multi-family, developers move in and start competing against families for older homes. Unfortunately, the builder always wins because they have more money and are willing to pay cash. Homes, perfect for a starter family or in need of being rehabbed will be purchased by a developer who will tear the house down to make way for a new multi-unit building on a small 5,000-square-foot site. (It’s called the highest and best use of the land). The moment construction starts, the value of a nice condition single-family home next door goes down; the appraisal term is called external obsolescence. Welcome to capitalism in America.
The lower-priced older home is gone and replaced by a higher-value building with higher rents. So, despite what the decision makers in the state government say about creating more affordable housing for lower-income people, often this process does the opposite. It creates more housing, but not what people with low incomes can afford. Maybe rent and prices will be lower in 20 years or so when these new units are older but not when they are first constructed. Once again, people with lower incomes are on the losing end of this change in zoning.
The link to the full article is: The attack on single-family zoning
I think that Richard Hagar’s perspective on this subject as an informed real estate appraiser is noteworthy.
Robert Mulder, Former Chair, Raleigh Planning Commission
If you appreciate the kind of reporting we bring to you
|
Please donate $10 or $20, Thanks for supporting |
 |