Why Do Developers Only Build “Luxury” Housing? It May Not Be As Much of a Choice As You Think.
A recent Strong Towns blog post attempts to answer the age-old question: Why does it seem that all new housing developments are “luxury” when there is such an acute and growing need for more affordable homes?
The author explains five reasons:
- Labor and materials for new construction remain expensive.
- High demand in low supply areas.
- Local land use restrictions on more affordable housing types.
- Other costly regulations, like parking minimums.
- Limited land available for missing-middle housing.
The post also argues that “luxury” is more often a marketing term than any true descriptor of build quality, especially since material finishes and amenities are often just a small part of total costs.
Do these explanations hold true for housing development in Virginia? Do you agree or disagree with this post? Send your thoughts and comments to firstname.lastname@example.org, and we might share your takes in a future blog.
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