The trend that is growing across the country at a rapid rate is teardowns. The definition is when someone buys an existing home then demolishes and replaces it with a new one. Last year, 10.2% of all single family houses built in the country qualified as a teardown according to the National Association of Home Builders. This statistic was up 7.7 % from the prior year. As the inventory of homes on the market continues to decrease, this statistic is bound to grow even more over the coming years.
Opinions vary on the positive impact of teardowns. Demolishing an existing home makes a lot of sense when it is of poor construction and in a great location. Where teardowns are getting a bad name is when the newly built house changes the character of the neighborhood, for example they are different architecturally or oversized for the lot.
As the housing market continues to grow more competitive, there will be more discussion on teardowns. Some cities are increasing taxes for teardown permits and are adding fees to remove trees to discourage teardowns. This may slow down the teardown process but will not change homebuyers wanting modern amenities, energy efficiency and nice lot locations. We are hopeful there can be a balance, so we can have new homes without losing the character and history of our communities.
Keith is the owner of Precision Home Development; and believes that his key to success is in the relationships he builds with his clients. Keith began his construction career 1999 with Classic Stellar Homes, a luxury home builder, where he was a construction manager in Scottsdale and Phoenix. The construction boom in Phoenix was occurring at this time, and sometimes Keith was managing as many as ten new home construction projects at once. The homes that he built ranged in size from 2,800-15,000 sq. ft. This experience gave Keith the tools to build a strong team of subcontractors through respect and reliability. Keith works closely with many of the exclusive design firms in Scottsdale, and has built homes and completed remodels though out the Phoenix area.