When renovating a home might be more expensive than tearing it down and building a bigger new home

In response to concerns from Portsmouth, New Hampshire residents that teardown McMansions were going to be constructed, the developer said:

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“By the time we renovated them, it would have been more expensive to do that than building a brand new energy-efficient home. That’s how we made the decision,” Chinburg said…

The company comes up with homes prices, he said, by “basically adding up what it costs to buy the property and build the homes,” and then adding “a fair margin.”

“Unfortunately that’s the market now … we’re not gouging people,” Chinburg said.

It would be interesting to see a breakdown of the different costs. Older homes may not be a great state of repair, they may need to be brought up to code, and they may not have the current features property owners expect. All of this requires money.

This reminds me of what can happen with big box stores. Vacant ones may not be very attractive given maintenance costs and the need to reconfigure the space for another user. Why not just build another one?

And while teardowns tend to occur in places where land is desirable, I wonder if this points to a tough future for many older homes and the aging American housing stock: will the costs of maintaining or updating the home be perceived as worth it?

The newly constructed modern farmhouse is…a scourge? A McMansion? Popular because of a TV show?

A story about an LA teardown describes the rise of the modern farmhouse:

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Hollywood actor Chris Pratt, best known for his roles in the sitcom Parks and Recreation and Marvel’s Guardians of the Galaxy, has spurred the wrath of architecture enthusiasts over his decision to raze a historic 1950s house, designed by Craig Ellwood, to make way for a 15,000-square-foot mansion.

The move to demolish came shortly after Pratt purchased the mid-century home in an off-market sale for $12.5 million in January 2023. The house is located in the Brentwood neighborhood of Los Angeles, across the street from Pratt’s mother-in-law, former first lady of California Maria Shriver. The historic house will be replaced by a modern farmhouse designed by architect Ken Ungar, Architectural Digest reported, and is now in the early stages of construction. Until its completion, Pratt is waiting it out with his wife, Katherine Schwarzenegger, in a $32 million estate in Los Angeles’ Pacific Palisades neighborhood…

Pratt’s new home is adjacent to Shriver’s two homes, each valued at over over $10 million, carving out a family compound of sorts in the neighborhood. The demolition reflects the rising trend of modern, multimillion-dollar farmhouses cropping up in America’s suburbs that has gone on for decades and was newly revived after TV personality couple Joanna and Chip Gaines launched their debut show Fixer Upper, in which they remodeled old farmhouses, according to a National Association of Realtors report. Ungar has designed several multimillion-dollar mansions, including modern farmhouses, in Los Angeles.

This raises at least a few questions. Here are mine:

  1. Are the typical new farmhouses McMansions? In this particular case above, this is a home much larger than a McMansion. But, many modern farmhouses might fall into McMansion territory if they are a teardown, have some strange architectural features, and/or are part of suburban sprawl.
  2. In this particular case, the modern farmhouse is replacing a unique single-family home. But, one reading of the summary above is that the issue goes beyond this one property. The farmhouse has spread everywhere. Are there too many? Is it just a passing fad? Will a new style – and problem – be in play ten years from now?
  3. Could one TV show have significantly fed this trend? It is easy to point to a popular show – and then brand – as leading the charge. It would be interesting to see some numbers: how many builders and buyers were directly influenced by Chip and Joanna? Were they the only ones pushing modern farmhouses or were there other influencers? In this one case, who was Chris Pratt influenced by?

Seeing teardowns and infill homes throughout DuPage County

While working on a project, I noticed something while driving through a number of DuPage County communities: there are teardown homes everywhere. They are not just limited to desirable downtowns; they are spread throughout numerous residential neighborhoods. They are often easy to spot: much larger than adjacent homes and with a particular architectural style with stone or fake stone bases, lots of roof peaks, and plentiful garage space. Some could be categorized as teardown McMansions. (Some of these homes might be infill homes where homes were constructed on empty land.)

These teardowns follow some of the patterns I found in over 300 teardowns in Naperville. The architecture and design is similar. The homes are often located next to older homes, often from the postwar era, from the twentieth century.

One difference is that these teardowns are spread throughout communities. In Naperville, teardowns tended to cluster near the desirable downtown area. In some of the communities I drove through, teardowns and/or infill homes are all over the place. Some of these communities do not have downtowns like Naperville and have housing stocks of different ages. It was not unusual to see a teardown suddenly in a neighborhood on the edge of a community when in Naperville the teardowns tend to cluster in particular neighborhoods.

In a county that is largely built out and with suburbs now 50-170+ years old, there will be more opportunities for property owners, builders, and developers to tear down old homes and construct new ones. My sense is that while communities may have regulations about what can be rebuilt, the general atmosphere is in favor of these new homes as long as there is interest and resources to make it happen.

How many landmark buildings should a suburb have?

As Napervillians debate the fate of the Scott house, a 156-year-old home constructed by one of the community’s first families, the number of historic landmarks in the suburb stood out:

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As things stand right now, there are no protections that would prevent future owners from altering or tearing down the house. Its location is just outside of the Naperville Historic District, where regulations dictate standards for exterior home improvements. It is part of a federal historic district, but their rules is not nearly as restrictive, according to the Illinois Historic Preservation Office.

Preservation is possible were it to be made a city landmark, a process open to any Naperville property over 50 years old, but that requires the recommendation of the Naperville Historic Preservation Commission and the approval of the Naperville City Council.

There are only four historic landmarks in Naperville.

Heap said he and his fellow co-owners are keeping options open but acknowledges the house’s future will hinge on who it’s sold to. That also goes for whether Heap’s law practice stays on as tenants.

This is not a new debate in Naperville. As the article notes, the suburb has a historic district that developed over time and through much discussion. Naperville has lots of teardowns where public debate could pit the property rights of the owners against the interests of neighbors or the community.

Is four historic landmarks, then, good or enough? The current four include two houses, one former church, and a former library building. One way to figure this out would be to do some comparing to other suburbs. I do not know these figures but someone or an organization might have them. Another way to think about it is that Naperville has a track record of preserving its past and telling its own story, such as through Naper Settlement and other actors. A third option would be to have some sense of what leaders and residents want concerning landmarks; do they want to save particular structures or have guidelines for more buildings and properties?

The matter of preserving buildings in the suburbs is an ongoing conversation as buildings from a prior era come up against changing conditions and styles. This includes homes (even McMansions eventually?) but also civic buildings and business structures. The American suburbs have had a particular look for decades but there is no guarantee that much or all of that remain in the future unless there are dedicated efforts to the contrary.

Dallas neighborhood fought off McMansions with conservation districts

The Greenland Hills neighborhood in Dallas limited McMansions in recent decades by establishing conservation districts:

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Neighbors were also concerned about tear downs and new builds. They watched as modern mega mansions took over the Park Cities. “There’s this thing coming,” Pratt says. And the residents, who founded the Greenland Hills Neighborhood Association in 1983, knew they had to do something to fight the “McMansions.”…

After that, Greenland Hills residents formed a conservation district. In the early 2000s, they surveyed the houses, and a feasibility study showed that about two-thirds of the homes were Tudors. And there was a schism in the neighborhood. There was the M Streets, between Central and Greenville, and then there was M-Streets East, which was sandwiched by Greenville and Skillman. East wanted less restrictive conservation rules, Mut says, and some blocks wanted to opt out.

Finally, the M Streets and M Streets East conservation districts formed in 2003. The M Streets Conservation District protects seven architectural styles, like neo colonial and contemporary. “We all get hung up on Tudors, and we should because that’s pretty massive,” Pratt says. “But the other styles are just as notable in the time period as well.” The district rules preserve each architectural style’s most iconic features on the front façade. The longest section is dedicated to the Tudors. There are specifications on window proportions, roof pitches, secondary gables, even doors. “We’re not going to put a Victorian door and a Tudor home,” Mut says…

And the prices of the houses increased. Homes in Greenland Hills often go for $800,000 or more. Mut can’t pinpoint the exact reasons for the surge in pricing, but he attributes it to inflation, the proximity to downtown, and demand for the homes. Mut and Pratt recognize the irony of the neighborhood’s start as an “affordable” neighborhood versus today. But it’s not an apples-to-apples comparison, Pratt says, especially now that the neighborhood is not on the outskirts of Dallas. And the overall value, she says, is still there. 

Three thoughts come to mind:

  1. The neighborhood wanted to protect its particular architecture and character. To do this, they set up guidelines that limited property owners. This is often the trade-off of historic preservation in American communities: retaining the older styles limits what current and future property owners can do.
  2. This occurs in a metropolitan region where McMansions are common. When I compared how McMansions were defined in the New York Times and Dallas Morning News, I found people in Dallas more open to McMansions. However, it sounds like people saw what was happening in other neighborhoods and decided they did not want this in their neighborhood.
  3. Home values in the neighborhood have increased. Would this have happened at the same rate if McMansions had been constructed instead? Preserving the older homes means the neighborhood appeals to certain buyers. Building McMansions means newer and bigger homes. Which option would have raised property values more?

The Simpsons encounter a teardown McMansion

The Simpsons have new neighbors in Season 35 episode 3, “McMansion and Wife.” They get to know each other and enjoy spending time together. But, then the neighbors go from a modest home to a teardown McMansion:

As the new home is under construction, it is called a “reno” and then a “do-over.” Then it turns into a giant home. By my count, the teardown is 3-4 stories, is much bigger in terms of square feet and height as it towers over the Simpsons’ home, and has a mishmash of architectural features. The Simpsons live in a modest suburban home by today’s standards.

This story of a teardown McMansion within an established neighborhood is a common story across the United States. The new home can be considered disruptive by some neighbors even as others might defend the ability of property owners to do what they wish with their home and land and benefit from those changes.

One possible twist this episode briefly explores is the relationship between neighbors in these positions. Can they be friends? Can someone moving into a neighborhood build relationships and soften the blow of tearing down a house and constructing something much bigger on the same spot? Or, do teardowns usually lead to conflict between neighbors?

From the first post-WWII house constructed in Naperville (by Harold Moser) to today

Can one property help highlight the changes in Naperville, Illinois in the last century? I ran into this news item first published May 30, 1946 in The Naperville Sun:

The Moser Fuel and Supply company has just completed the first new house to be built in Naperville since the outbreak of the war in 1941. This “No. 1” house, as it is referred to by Moser employees, is at 417 S. Sleight St., and is a little dream in brick veneer with chocolate-color mortar. Ten other Moser houses are going up around No. 1, eight of which are in the 400 block of south Sleight Street and two on South Wright Street.

According to multiple real estate websites, the current house on the property was constructed in 2004 and is worth over $1 million. Here is a June 2019 Google Street View image of the block, including the newer home on the property:

Several patterns worth noting:

-Naperville was a different place after World War Two: much smaller in population, lots of farms and agriculture around.

-Harold Moser and his firm ended up building thousands of units in Naperville. Moser Highlands, one of his first subdivisions, is just south of this location. He and his wife are honored in a statue along the Naperville Riverwalk:

-There are lots of teardown homes in Naperville, particularly near the downtown. As Naperville expanded in population and its status grew, some of the older suburban homes built decades earlier gave way to larger structures. I studied patterns in some of these new homes in a 2021 article.

In other words, this was not just one home constructed by a resident who owned a local business; it was part of larger changes to come in a suburb that became large and wealthy.

Tearing down what used to be starter homes and replacing them with McMansions

This sounds like what I found among teardowns in Naperville, Illinois: some desirable lots that used to contain starter homes now are home to McMansions.

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In each of these places (that last one is Austin), modest entry-level housing has been replaced over time by far larger and more expensive homes out of reach of most first-time home buyers. Neighbors sometimes sneer at such new additions as “McMansions” (but note the regional variation in McMansion architecture). I often hear from readers and residents during my reporting that it’s a shame the developers who built them tore down “perfectly good houses.”

This has consequences:

There is nothing inherently bad about small 100-year-old houses getting replaced by larger, modern ones (indeed, many planners, historians and economists would say there is something bad about insisting that communities must remain exactly the same forever). Tastes change. Consumer demands and demographics shift. Americans, on average, have become wealthier over time, capable of affording more housing than the typical family could three generations ago.

But the reality is that most communities effectively ensure that the only viable replacement for a starter home on expensive land is a new home that’s much larger and more expensive. That stance contributes to the affordable housing crisis. If communities struggling with it want to rebuild the entry-level end of the housing market over time, that will almost certainly require allowing a new generation of starter homes that look more like duplexes or condos, or small homes on subdivided lots.

Over time, the number of smaller homes in desirable communities or neighborhoods dwindle as property owners and new buyers want homes that reflect more current trends. Another way to think about this: the supply of starter homes or smaller homes is reduced in particular places (if it is already not that affordable because of the demand in desirable places) and it is not necessarily being replaced nearby, if at all within a region.

It may be worth noting that this teardown pattern does not happen everywhere in cities and suburbs or even in most places. While I have not looked at the issue systematically in the Chicago region, the evidence I have seen is that teardowns are taking place in larger numbers only in certain locations.

Teardown a home for a new parsonage that may not be a McMansion

What happens when the needs of a church for a larger parsonage converge with the interests present in a district of older single-family homes where teardown McMansions occur? Here is a case from the Buckhead neighborhood of Atlanta:

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Peachtree Road United Methodist Church aims to demolish a historic Buckhead Forest house for a new parsonage, stirring preservationist concerns.

The 81-year-old house at 3210 West Shadowlawn Ave. is listed as contributing to the Alberta Drive-Mathieson Drive-West Shadowlawn Avenue Historic District, which was added to the National Register of Historic Places in 2015. But that does not prevent demolition and the property has no City historic protections. The church claims the house is “uninhabitable” and can’t meet its mother organization’s requirements for large parsonages…

The historic district application was filed with the National Park Service in 2014 by the Georgia Historic Preservation Division. The filing says the neighborhoods are historically significant as part of a building boom that followed a 1907 trolley line extension on Peachtree, and for its wealth of intact architecture dating from the 1910s through the 1960s. West Shadowlawn, the filing says, was named for a subdivision called Shadow Lawn, which started construction in 1922. The filing includes a photo of the house at 3210. The main church property is not included in the historic district.

Rev. Bill Britt, the church’s senior minister, told the DRC that the plan is to build a parsonage as a home for a member of its clergy who currently rents elsewhere in the city. The existing one-story house would be replaced with a larger, two-story version…

Project architect Brandon Ingram noted that many houses on the street date to the period of the 1920s through 1940s. He said the church wanted the new parsonage to be be “respectful” of that aesthetic and look “a little bit more vintage” rather than “some giant Buckhead McMansion.”

This sounds like a typical teardown situation: there is an older property in a desirable single-family home neighborhood that needs some work. It does not have modern features or the size of new homes today. A property owner wants to tear it down and build a new home. Some in the community want to preserve the old home and worry that a new home changes the local character. Some in the community want property owners to have the right to do what they want with their property and be able to reap the benefits of what might come along.

Does it change the situation if it is a local church that wants to pursue the teardown? The church will likely profit from a teardown – increased property value, a newer home – but it is also a community or non-profit actor and not just a private owner. The church has been around a long time and the parsonage may not change hands for a long time. The intended use is for church staff.

Is a church that is a long-term member of the community less likely to construct a McMansion and instead lean more toward the existing architecture of the neighborhood? Trying to picture a McMansion nearby a historic looking church building – see image below – does not work as well as imagining a McMansion near a newer megachurch in the sprawling suburbs.

Google Street View of Peachtree Road United Methodist Church

If religious congregations are in the business of building McMansions, there may be an interesting story to tell.

Teardown McMansions in Tampa

A large number of teardown McMansions have been constructed in recent years in Tampa:

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Nearly 5,000 residential demolition permits have been issued in Tampa in the last decade — including 709 in 2021. That’s the most in any single year since at least 2005, according to city data.

“Having all of these homes torn down is a wrinkle we haven’t had before,” says Tampa historian Rodney Kite-Powell, “and the pace is really incredible.”

A blogger has tried to keep up with“The McMansioning of South Tampa.” About 2,700 razed dwellings are pictured. Some of the lost homes are majestic and sad. Many, though, were tired and untended. The sheer volume is beyond what a single blogger could chronicle. Ten of the 14 homes knocked down this century on Jerry’s block aren’t depicted on the site’s map. Even so, the layers upon layers of red pins are striking…

Not everyone is happy. Search the local Nextdoor site for the term “McMansions” and you’ll encounter one of the more passionate running discussions in the city. When a one-story home came on the market at the start of the pandemic, neighbors implored the owner to seek a buyer who would maintain it. “I beg you not to sell it to a builder that will level it and build a ridiculously oversized McMansion that ruins the charm of our neighborhood,” wrote Lisa Donaldson. “Please.”…

Others counter that the older homes are no longer functional and that the newer onesraise the value of those around them. “The curmudgeons will always complain … until they are ready to cash out,” posted Marc Edelman. “Tampa is progressing for the better.”

A few quick thoughts in response:

  1. If just looking at economic factors, teardowns tend to occur in desirable neighborhoods where the new homes can fetch a significant profit compared to the previous dwelling.
  2. Socially, teardowns are more difficult to navigate given the competing interests of property owners who want to make money, builders and developers looking for opportunities, neighbors who might be opposed to a changing neighborhood, those interested in local history and preservation who might prefer to keep older dwellings, and local leaders who may or may not support teardowns.
  3. Sunbelt cities and communities have experienced much growth in recent decades. People are used to change and growing populations. But, this is a different kind of change where existing homes are replaced rather than new subdivisions spreading across available land. There is now an established landscape that could look quite different in coming decades.
  4. Sunbelt communities are generally pro-growth. Does this change at some point given population sizes and composition, the availability of resources, and several decades of established history?