Why do people buy postage stamp houses?

[Trbo323]

Postage stamp house= the white border of the postage stamp is all the property you own, the stamp image is the footprint of the house.

Was talking about this with my wife, understand that we both grew up on houses with a little property. My family was on one acre, hers had 5. When it came time for us to buy our first house it was on about a quarter acre. Enough to have a front and back yard and some space around the house, nothing crazy, it was our first house and we knew it wouldn't be the forever house.

Our second house is on about a half acre, enough room to put a camper next to the house, have a shed, garden beds, we are planning to build a patio out front etc. it's enough space that we know we won't want to move for lack of space.

But in our neighborhood there was a house that sold, the strip of land it was on probably totaled about an acre. Developer came in, bulldozed the house and built 6 on the same strip of land all sharing the same driveway and all about 5 feet from each other.

Now, I understand why the developer wants to build the houses like that but what I don't understand is why people actually buy them. It just seems ridiculous to me. You can't even own a 3rd car because you have nowhere to park it. What do you do when your kid wants to start driving? Can't remodel anything that involves the exterior of the house unless you are ok with having less space inside. (Sorry Timmy but your mom and I really want a deck so you will have to move into your brother's room)

Want to own a camper? Sure there's plenty of self storage places to store it at but you can't even bring it home to pack for the camping trip because you would be blocking everyone else on the shared driveway.

I just don't get it. The land you own is what increases in value but with the house on 95% of what you own even as an investment it doesn't make sense.

Sent from my motorola edge 2024 using Tapatalk

[Drcemento]

I've long wondered the same thing. I feel like these are an entire class of people that exist in a different universe than me. I've never become friends with someone that lived in one - never even really been in one. Would certainly never own one. To each his own I suppose. Someone must think its the peak American dream because there sure are allot of them. They built a 9 house subdivision just up the street from me - never seen anyone out front. Never see them walking. Garage door goes up Telsa goes in, door closes and that's that. Meanwhile I know everyone else around me, see them in their yards, wave when they go out on their evening walks...

[Cdn_Cuda]

My sister and brother-in-law is the type that wants a postage stamp home. They want the prestige of owning a home but don’t want to do any of the work and upkeep. Hire someone to cut the grass even. They would have been better off with a townhome but are the type of people that status is importantly to. So they want the status of owning a house but none of the rest of it.

Personally I cherish having a big yard (relatively) for my family to use and am extremely fortunate to have that given the housing market I live in.

[Trbo323]

My sister and brother-in-law is the type that wants a postage stamp home. They want the prestige of owning a home but don't want to do any of the work and upkeep. Hire someone to cut the grass even. They would have been better off with a townhome but are the type of people that status is importantly to. So they want the status of owning a house but none of the rest of it.

Personally I cherish having a big yard (relatively) for my family to use and am extremely fortunate to have that given the housing market I live in.

But they still have the upkeep on the house right? There's not like some weird HOA that fixes their house if something breaks

That's kind of part of it to me, it feels like you are buying an apartment but have to maintain it yourself. I didn't get where the prestige is. Heck you can't even really show it to me because there's nowhere for me to park and come check it out

Sent from my motorola edge 2024 using Tapatalk

[William the Third]

I'll never understand this. Near me a bit over a decade ago there was a nice old man who died. When he died he had some 60 acres, all undeveloped forest, that his family then sold off. Now on that 60 acres there are literally hundreds of houses, all cookie cutter, all cheaply/poorly built, all right on top of each other, and all sold for stupid money.

If I could, I would have bought the property, cleared a few acres in the center, built one house, and one huge workshop/garage there, and left the forest all around as a nice buffer between me and the rest of the world.

[Magmoormaster]

I can think of a few reasons.

#1 price
#2 smaller yard = less maintenance
#3 only option for new houses
-new houses have better features (big kitchens, primary bathrooms, etc)
-new houses are more energy efficient
-new houses look better/trendier (compared to 60-80s ranch and split levels)
#4 people at different stages of life have different needs

I for one would hate to live on a half acre. I'd be much happier in a townhouse, or one of these "postage stamp" houses, as you call them. My dream house is on .09 acres. I love the floor plan, it has a small side yard for all my outdoor needs, looks nice, and the location is ideal. A lot o people (myself included) care far more about the house itself than the size of the yard. I don't want a big yard; a small space to grill and lounge, and a place for the dogs to poop (not that I have a dog, but I don't own a house either), is all I need. I'd rather spend the money on a nice primary bathroom, kitchen with lots of work space, and good interior design.

My parents have casually been looking at moing to a different state, and they have similar feelings. They'd much rather something small and low maintenance. They're nearing retirement age and so aging in place is a major factor for them.

And that's before we get into the topic of density, suburban sprawl, and car dependancy. But that's a whole other discussion.

[SignOfZeta]

They can’t even own a 3rd car, WTF?!?!

Believe me, I understand your point, but you may want to google “elite projection” because that line is laugh out loud. I certainly own three cars, yes, and I still cracked up.

Campers and 3rd cars are luxuries, so is having a kid to drive the 3rd car. People who understand this attempt to do with less because that’s what the world tells them to do. A house built on 1/6 of a lot is another attempt to do with less but I agree it’s not logical. Home ownership is a full time pain in the ass. You want it all to actually be WORTH IT and if you don’t have a spot to park a bicycle and you have to share music tastes with five other houses you may as well rent. It’s kind of like going to the bother of getting a new car and buying a Kia with a 2.0 theta engine. You have the payments, the full coverage, etc but the thing blows up in three years and you’re upside down on a car you used to own and driving a ‘96 Sentra.

People are very bought into the idea that home ownership is some kind of pivotal life achievement and will do all kinds of nonsense to pull it off including purchasing useless dwellings such as you describe, caving to home owners associations (now built into new homes from the day ground is broke!) and buying houses an hour away from work so they can get something so huge they’ll never be able to quit working or the man will repo it. The disinformation industry around home ownership is so deep and so wide it’s hard to fault people for falling for it.

[Kit352]

Let me start off by saying I love tiny homes. Not only do I own one I have built 4 of them so far. I truly believe they are the future of housing in this country.
Now, to answer the question of why it generally falls into a few categories
- cost. If you have a place to drop it I can build you a turn key tiny home in about 2 weeks for $20k. Might even be able to do it faster if I have the supplies on hand and inventory can be found.
- community. Put 10 tiny homes together and you don't have 10 neighbors, you have one community. People naturally extend their living space outdoors simply because there is more room out there. Porches become living rooms and everyone in the area is going to stop by. Tiny home communities have a way of regulating who lives there. A heavy drunk isn't going to move into a community of artists or classical musicians.
- to escape the rat race. Tired of being #2 in life? Skip it all and Lord over your own tiny house. Less bills, less maintenance, less stress. A winning combo.
- your a minimalist. Believe it or not not every one wants a 3rd car and camper. Many don't even want one car. They live with just enough to get by. My gf is one of those types. No car, no real possessions other than a couple suitcases of clothes and two motorcycles. She absolutely thrives in a tiny house.
- retirement. That's a big one. Simple single floor living with very little upkeep. Minimal costs to own. Again, I can build one for $20k. That's its. Basic but it works. Better than a studio apartment with a serial killer above you and a serial rapist beneath you. It's on par with a basic one bedroom apartment. You want fancier? Pony up the cash though I generally don't do those.

As for the land issue you will find a lot of those communities have a central parking lot or an overflow one for visitors. Many prefer this because it reduces traffic and noise. Some require you to not have a car parked on your property. It's heaven for some, hell for others.
You also have a cost benefit to it as well. Most of those communities have shared utilities and are taxed on the land they are all built in rather than individually.

Personally, having lived in huge houses on massive chunks of land and also living in tiny houses I think huge houses are the single biggest waste of money and effort anyone can own. How often are you going into that closet in the back? Or opening the door to the guest bedroom? All a waste.
As for land there is a saying that whoever owns the most when they die wins. That's over rated. Some land is ok, too much land is just a tax burden. And it becomes hard to manage. That 100 acre lot you are so keen to have means your working harder to pay the taxes and spending less time on things you love to do...maybe it will be worth something down the road but maybe you lose money on it because of carrying costs. And God help you if you to do improvements to it.

[SignOfZeta]

The $20,000 tiny home is a myth. Fight me. It’s $8000 just to hook up to water where I live and I pay a S load of tax because I don’t want to live in BFE. If it’s legal and in the US (actual US, with cel coverage and zip codes and such) it’s not $20,000.

Regardless, I’m pretty sure the OP was only referring to the size of the yard, not the houses. The houses are probably as huge as they can be and still fit on the lot. So will be all the cars and the people themselves.

[autococker04]

Location probably has a ton to do with it for a lot of people. Also price.

I think I have a quarter acre plot, I don't actually know how big it is. But I could have had a much bigger one for the same price if I was willing to travel an extra half hour to see friends and family, get to the city, or work. That time is more valuable than the extra space to me.

[Trbo323]

I can think of a few reasons.

#1 price
#2 smaller yard = less maintenance
#3 only option for new houses
-new houses have better features (big kitchens, primary bathrooms, etc)
-new houses are more energy efficient
-new houses look better/trendier (compared to 60-80s ranch and split levels)

.

#1 sure but that's what I was talking about as an investment. These are not going to increase in value like a normal house either, hell if the "trend" dies what does that do for the value of these? If the value doesn't increase how do you ever move on to something else? You will be in the same spot as when you originally bought it.

Our first house was built in 1980 and while we owned it it nearly doubled in value. Yes we put a lot of work into it but without that value increase there's no way we would have been able to afford the house we are in now

#3 simply not true, zoning requirements allow these but in other areas they may not be allowed so you just have to be further outside of the cities. You can always buy land and plop whatever you want onto it. Our house is a manufactured triple wide, you can still buy these brand new, heck you can still get the floorplan I live in even. Ours does have an addition onto it as well so it totals about 3000sq ft . Plus a garage (2500 original without the addition) so no shocker, we have a massive kitchen and dinning space, huge master bath walk in closets etc. you can still buy this floorplan and plop it onto whatever land you have. Postage stamp houses are not the only option.

The $20,000 tiny home is a myth. Fight me. It's $8000 just to hook up to water where I live and I pay a S load of tax because I don't want to live in BFE. If it's legal and in the US (actual US, with cel coverage and zip codes and such) it's not $20,000.

Regardless, I'm pretty sure the OP was only referring to the size of the yard, not the houses. The houses are probably as huge as they can be and still fit on the lot. So will be all the cars and the people themselves.

Lol, the cars are people as huge as they can be. Well put.

But yea I agree on the cost side. I deliver propane for work, I deliver to a lot of RVs and the specific tiny homes have never made sense to me when you can buy an RV for cheaper, it's mobile, has more storage and is set up to be a tiny house already. If you want to live close to neighbors there's lots of RV parks.

I have a handful of customers that snowbird with their RVs. They live in them full time but I don't see them for half the year because they chase the better weather. They rent out multiple spots at different RV parks and just move where they want to be.

Sent from my motorola edge 2024 using Tapatalk

[martix_agent]

But they still have the upkeep on the house right? There's not like some weird HOA that fixes their house if something breaks

That's kind of part of it to me, it feels like you are buying an apartment but have to maintain it yourself. I didn't get where the prestige is. Heck you can't even really show it to me because there's nowhere for me to park and come check it out

Sent from my motorola edge 2024 using Tapatalk

the "prestige" is that you own something, and eventually don't have to pay rent or a mortgage.
Any home you own will be like this, no matter what the size.


Owning land always seems nice, but it takes time, money, and equipment to care for it. These aren't things everyone has available.
Houses with land are usually further away from jobs also.

[trashcollector]

Big property, small house, big shop, big family.

Air conditioning and tell-a-vision ruined communities long ago. People are lost and do their best to avoid anything that requires work or effort. Big yards and properties require effort.

edit- I also laughed at that 3rd car comment (I have 4)

[Daltech]

This thread ain’t gonna go over well with the poors.

Minimum requirement to post in thread:
1. Rolex,
2. CCM
3. Property ownership
4. 3 cars, minimum
5. A boat at least 23’ long.


All sarcasm aside,

The big question is why do counties keep raising appraisals sky high? Is it because they get more taxes if your property magically increases in value? Despite the building getting older and older every year. Property values are tied to a cash grab via taxes.

And apartments and tiny homes aren’t a viable solution. I couldn’t imaging living, cooking, cleaning and eating in my bathroom. But hey, they make gigantic profits for someone down the line.

[Magmoormaster]

Before I respond (mostly because it felt out of place to say so anywhere else) I want to make it known that I work in residential architecture, and have done so for about 8 years. I currently work in the architecture department at one of the largest home builders in the US, and I have previous experience working on high end custom houses. I eat and breathe houses.

#1 sure but that's what I was talking about as an investment. These are not going to increase in value like a normal house either, hell if the "trend" dies what does that do for the value of these? If the value doesn't increase how do you ever move on to something else? You will be in the same spot as when you originally bought it.

Our first house was built in 1980 and while we owned it it nearly doubled in value. Yes we put a lot of work into it but without that value increase there's no way we would have been able to afford the house we are in now

#3 simply not true, zoning requirements allow these but in other areas they may not be allowed so you just have to be further outside of the cities. You can always buy land and plop whatever you want onto it. Our house is a manufactured triple wide, you can still buy these brand new, heck you can still get the floorplan I live in even. Ours does have an addition onto it as well so it totals about 3000sq ft . Plus a garage (2500 original without the addition) so no shocker, we have a massive kitchen and dinning space, huge master bath walk in closets etc. you can still buy this floorplan and plop it onto whatever land you have. Postage stamp houses are not the only option.

#1 outside of a major price correction, which even with a major recession is unlikely, those small lot houses will still go up in value. My brother built a house with his first wife in 2016 or so, and it has increased in value by about 50%. It would probably be higher if it wasn't for the location.

There's also a big discussion to be had about how housing being an investment is negatively impacting housing availability, but again that's a different discussion.

#3 Well tbf the type of house you're talking about, with minimal yard and shared driveways, are definitely built with a zoning exemption. In almost every residential zone across the country they will not be allowed.

Now, regarding buying land and putting something on it, yeah you "can" do that. But #1, most people don't want manufactured houses. Mostly they have a negative stigma attached to them, and even though they have gotten a lot better over the years they are still categorically worse than a traditionally framed house in terms of envelope and efficiency. The floor plan options are also much more limited.

To be clear, I'm not knocking your house. If you're happy with it, great. I'm just saying it is not what the average buyer wants.

There's also the fact that buying land and putting something on it is a lot more work than buying a house from a developer. Utilities, permits, construction, and so on, all stuff the developer does for you. If you're building a custom house, sure it's worth it. But for most people, getting a production house from a developer on a tiny lot is better than jumping thru all the hoops to put a manufactured home on a big lot. And in most places, there isn't land available to do this. In Utah where I'm from, there's hardly any land left that hasn't been developed already. Small infill developments are about the only option, unless you want to live way out of town and have an hour or more commute.

"Only option" might have been an oversimplification, but most people want a traditional framed house, and don't want to be really far out of town, so for a new build there usually aren't other options.

I will have to address density at some point but I'll have to come back to it later.