This morning, I read a post on the Charlotte Agenda that the Charlotte City Council is looking to crackdown on Charlotte’s first and only tiny house neighborhood, Keyo Park West. The tiny houses that are being developed and sold in the neighborhood in question are regular houses, just with 1 or 2 bedrooms and are affordably priced. The city council is being petitioned by residents from Charlotte’s Coulwood neighborhood to stop the project as they’ve been told the project will lower their home values.
For the record, neither myself or JANDA represent the Seller / Developer of Keyo Park West.
Okay, now that’s out the way, let’s address some of the concerns.
The tiny houses are a niche product and will lower neighboring home values.
This is laughable and completely false. While the tiny house movement may seem like a fad to some, they may be the last bastion of truly affordable home ownership. Unlike many of the tiny houses featured on tv shows, Keyo Park West units feature a real foundation just like any other permanent real estate. The entry level home features 1 bedroom, 1 bath, 493 sq ft, .20 acre lot and is priced at $89,995. That’s $182.54 per sq ft for a new house.
Within a 1 mile radius of this neighborhood, the average selling price per sq ft is $93.75, with sales prices ranging from $58,900 to $259,000. 601 Morningside Rd is a 1 bed, 1 bath 616 sq ft home that was built in 1963 and listed for sale for $58,900. The next smallest square footage wise is a 2 bed, 1 bath, 819 sq ft home on Merrily Lane that recently sold for $85,000.
So I ask of you: who’s dragging down property values: the new single family neighborhood or the existing homes?
Next Complaint: Tiny Houses are the Wrong Product at the Wrong Time.
I would argue that a tiny home neighborhood would be the EXACT RIGHT product for that neighborhood. The 28214 zip code was hit hard by the recession, resulting in many single family homes becoming converted to rental properties. Within the same 1 mile radius as mentioned before, there are a total of 504 minimum 1 bed 1 bath properties that are non-owner occupied (vs 1501 home showing owner occupied) and the rents are over $1,000 per month. The least expensive home available for rent in all of 28214 is a 2 bed townhouse for $1,150, while the mortgage on the entry level Keyo Park West home would run around $600 per month 30 year PITI.
Homeowners being able to afford the homes that they’re living in is a good thing and will lead to further investment in this part of Charlotte.
Final Complaint: The City Council Must Do Something.
I don’t hold much faith in the Charlotte City Council and I say that with respect. The decisions they have allowed in this city with regards to housing have been, at best lazy and at worst a dereliction of duty. For the better part of six years, apartment developers have had their way with the City Council with most rezoning approvals meeting little to no opposition. This resulted in many affordable housing options being eliminated for residents throughout Charlotte and many residents forced out.
A tiny house neighborhood creates a much more affordable option for residents and with available incentives from the NCHFA and VA, some can even obtain down payment assistance.
I applaud the developer for trying something different and, from all accounts, succeeding. The reality is that not everyone can afford a $250,000 house or even wants a $250,000 house. While the mortgage payments are equivalent to the amount some are paying in rent, saving the 5-6% for the down payment and closing costs can be difficult.
If the Charlotte City Council does ANYTHING to impede this and other similar developments like this, they should be promptly removed from office for incompetence. That’s just my 2 cents. Please reach out to members on the city council and express your opinion – hopefully in support of projects like Keyo Parkk West. I will be reaching out to my representative in the morning.
We would be more than happy for you to bring this development to YOUR neighborhood and sell them.
We also trust the real estate company in our area that has been here 30 years, almost exclusively for much of that time and also agents who live in this area working for other companies who also see this development as a negative to existing properties.
To say this development is “affordable housing” is laughable. People buying these homes are making a CHOICE to downsize or live in a 493 SF “house”. 56% of people who purchase a tiny “home” are over 40 years old and 38% of them are over 50 years old. Just because someone goes from a $1500 per month mortgage payment or $1000 per month rent payment to say $500-$600 per month mortgage, is again, a conscious choice.
The “affordable housing” tag being put on these does not do anything for the 12 million Americans who can’t afford one of these homes. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. An estimated 12 million renter and homeowner households now pay more than 50 percent of their annual incomes for housing. A family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.
We also believe that any council member who supports this project should be removed from office for incompetence.
It should be noted that this builder requires a $4000 non-refundable “lot/design” deposit.
This is our two-cents worth.
“Residents”,
I appreciate your take on this. On the value, we will agree to disagree.
As far as wanting them near my house, bring them on as designed. When I first learned of the project, I was thinking that the builder was making a portable tiny house, like is constructed on Tiny House Nation and other shows. After learning that homes were built on a permanent foundation and features a host of other “normal home” features, I turned the corner. Fact is that there’s nothing typically tiny about the plans being offered.
The majority of condos in the center city are 1 bedroom units and many of the mill homes throughout the Piedmont available currently for sale were less than 1,000 sq ft and up to 2 bedrooms. So with that being said, I would prefer a tiny neighborhood near my house instead of the apartments that are being constructed.
You’re right too that a one bedroom house isn’t for everyone. The city council may see that as a positive since, like age-restricted neighborhoods, the residents have no need for schools and other public services but pay a relatively high amount of taxes.
If I were in your camp, I would ask to see the proposed covenants for the subdivision and, among other things, look for a provision that would ban short term rentals. I could definitely see an investor purchasing one of these for use as an AirBnB (although it’s a little far out but the price is right).
Hopefully a compromise can be found.
I’m 64 yrs old, live in Coulwood and I will be surrounded by these tiny homes! Seven (7) will be backed up to my driveway, 5 additional backed up to my rear property line, and I think that this will severely hurt my property values! This is a new concept and it is anyone’s guess what this will do to our neighborhood!
Pam, I am one of those people considering moving to this new tiny home development. My husband and I want to downsize, and finding affordable smaller housing in the Charlotte area is almost impossible. Tiny housing is not a new concept, it’s an old concept. Houses in this country were traditionally small before big business came in, everyone lost their minds, and an insatiable appetite for bigger and better took over here in the US. Maybe it’s time to return to tradition so our country can survive. Yes, my husband and I can afford a bigger house, but we don’t want a bigger house. We want a tiny house. We don’t want to pay for space we don’t use, which is what we are doing currently in a house we own. I am a minimalist so I don’t have a lot of things per say. We don’t want to live out in the sticks. We want to live in Charlotte, where our jobs are, and we want something affordable as we age and retire……we are 49 and 52. My husband and I are good people. We have always taken care of our home and property’s wherever we have lived. Pam, I even adventure to say that if my husband and I do move to this tiny house community that you and I would become friends. I would wave and smile at you as I take my daily walk. I understand the controversy and the unknowns about this development. Change is always scary, and the unknowns always concern people. However, I think this development could be a real positive for North West Charlotte. I think tiny home developments across the nation could and do bring about positive change for communities. Sincerely, Kelly a tiny house enthusiast and minimalist
Great article. Your points are right on in my opinion.
I think the tiny house idea is a good one but the exteriors should have a more “charming” look to them. ( ex… bungalow look with front porch ) . The design of these is AWFUL ! Looks like storage buildings…. Make the community look like a desirable well designed community and it might be more welcomed by the current residents in Coulwood…..
Tiny homes are the way of the future…like it or not. People need to get used to the idea. The days of excess are over. If you choose to live in a 2500 plus square foot house, you are right to be worried. It’s not this development that threatens the value of your home, it will be the lack of desire to live in homes that size that will. Sorry, not sorry. 🙂