Home Buying in 94086>Question Details

Cathy, Home Buyer in Sunnyvale, CA

Anyone know what will happen to the two areas that are fenced off on Evelyn going west, before you hit downtown? On the left was the old Sunnyvale

Asked by Cathy, Sunnyvale, CA Tue Oct 22, 2013

Hotel and on the right looks like office complex or businesses in the past. Also, does anyone know if they will be new single fam homes anytime soon in 94086 or 94085? Thanks!

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4
Hi Cathy,
The others are correct. Empty land is scarce here, so new communities will almost certainly be densely packed. Even if they did build single-family, most likely they will be very close to each other and still have a monthly HOA fee.
0 votes Thank Flag Link Fri Nov 1, 2013
Hi Cathy:

Right now, none of these areas are slated for single family homes or residences, and there is unlikely to be any new single family homes built within Sunnyvale for a long time.

Land acquisition costs within Sunnyvale (as well as Mountain View and other parts of the Peninsula) are so incredibly high, and the need for housing units so great, that developers are almost "forced" (often by City zoning and planning departments) into making dense housing versus making single family homes.

Keep in mind the following:

1. Developers make more money per square foot of land by making dense housing. In an acre of land, for example, you can build 7 homes with lots of about 6000 square feet each (I am, of course, assuming a non-zero lot community). After building costs, land acquisition, planning, permits and expert fees, you'd need to sell a new home here for about $2,000,000 each in order for the developer to make enough money to build here and that would only gross about $14 million when its done--not much incentive for a builder given all the attendant costs and risks. Thus, its not economically feasible to build homes at this cost in Sunnyvale.
2. On the other hand, in the same 1 acre property, a developer can build 26 townhome units with a foot print of 1200 sq ft. These same 26 units would cost, say $650,000 each. Not only is the entry price for each home lower and more affordable for buyers, the gross value of the project for the developer is $16.9 million.
3. Every city wants a larger "resident" base, because more residents means more taxes, more income, more spending, more votes. As a City, would you prefer 7 new homes or 26 new homes? Politically and economically, a city will opt for the 26 homes and the larger number of available taxpayers each time a decision of this type comes up.

While I know it's everyone's dream to purchase a single family, stand alone, no walls attached NEW home in Northern California, the lack of available building land, and the costs to build such a property simply make this type of construction not feasible for most developers or buyers. This is the reason why--if you want to live in Sunnyvale--buyers are willing to pay $1.3 million (plus) for a larger lot, an older home and a desirable school district.

The best thing to remember is that, whether buying a single family home or the condo/townhome, buying the best home you can afford in a desirable area will help you build equity necessary to eventually purchase a single family home later on.

Good luck!
Grace Morioka
Allison James Estates & Homes
0 votes Thank Flag Link Wed Oct 23, 2013
It is more apartments. There are currently no new SFR developments in those area codes.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Tue Oct 22, 2013
Yes, More apartments where the commercial buildings are and where the hotel across the street I heard those will be condo's. But could also be apartments where the old Sunnyvale hotel is. More traffic.
Born, raised, live and work right here in Sunnyvale.
http://www.ServingSantaClaraCounty.com
0 votes Thank Flag Link Tue Oct 22, 2013
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