What's Up With Teardowns?
Date: July 1, 2003
Contact: Mary Bridget Reilly
Phone: 513-556-1824
When most people think of demolition, they think of dilapidated buildings that have fallen into disrepair. Across the nation, however, there are pockets of bulldozing where the structures razed are houses in great condition. They're cleared to make way for bigger, updated houses.
"Teardowns" - also known as "bash and builds" or "knockdowns" - have been more common in Los Angeles, New Jersey and the upscale areas of Chicago, but they have also made their way to other parts of the nation - such as Indian Hill and Montgomery, near Cincinnati, and Bexley and Upper Arlington near Columbus, Ohio. Today's University of Cincinnati e-briefing examines this trend and the issues that have given rise to it, as well as upsides and downsides.
Table of contents:
1. Historical crisis or timely trend?
A. Starter homes: An endangered species?
B. Rome wasn't built in a day
C. A generational housing gap
2. Building boon or bane?
A. Few drawbacks
B. Bolstered by interest rates
C. A tax mine for municipalities
D. Moratorium encouraged
E. Nostalgia: A recent development
3. Where the action is
A. Hot spots
B. Location, location, location
C. A recent case: Montgomery, Ohio
1. HISTORICAL CRISIS OR TIMELY TREND?
A. STARTER HOMES: AN ENDANGERED SPECIES?
In 2002, the National Trust for Historic Preservation published a report on the teardown trend, stating that "a disturbing pattern of demolitions is approaching epidemic proportions in historic neighborhoods across America." Soon after the report came out, the National Trust began to hear from a lot more communities all across the country. "This is happening in Idaho and Indiana, not just the high-end resort and urban areas. It's really happening all over," said Adrian Scott Fine, one of the report's authors. While the National Trust acknowledges that some demolition and replacement construction is desirable when a structure has no historic value, it is alarmed by the trend of putting up housing that is totally alien to the historic character of a neighborhood. Another concern is that the practice raises property values to a level that "starter houses" have become an endangered species, Fine said. In some of these communities, there's no place the working class - police, librarians, postal workers -- can afford to live anymore.
Contact: 215-848-8033
B. ROME WASN'T BUILT IN A DAY: IT WAS BUILT, REBUILT AND REBUILT AGAIN
Bruce Goetzman, University of Cincinnati associate professor emeritus of architecture whose historic preservation efforts have received national recognition and who is past president and founding member of the Ohio Preservation Alliance, also notes that "knockdowns" are nothing new. He says, "Settlers' log cabins were knocked down to make room for brick homes. Every city in this country began as log buildings. Almost every seacoast cottage makes way for a high-rise condominium. Rome is different today than it was in the time of the Caesars." For the most part, "knockdowns" are much more common in the United States than in Europe, where much stricter land-use controls are in force.
Contact: 513-281-7244
C. A GENERATIONAL HOUSING GAP
Frank Russell, director of the University of Cincinnati's Community Design Center, points out that the generational transfer of housing stock from the World War II generation to later ones has accelerated the "teardown" trend. He explained that Cincinnati's Indian Hill suburb is a perfect example. Homes were first built in this upper-middleclass area in the 1930s. Housing construction accelerated in the 1950s, '60s and '70s. The homes of those decades tended to be modest ranches on large lots. In the late 1980s, that housing stock began moving into the hands of younger generations who wanted to live in the community because of its land values and good schools but found that the modest homes didn't meet their needs. "Building these 'McMansions' works in Indian Hill because the lot sizes can support larger homes, and there's still plenty of green space," adds Russell.
Contact: 513-556-3283
2. BUILDING BOON OR BANE?
A. FEW DRAWBACKS
Norman Miller, director of the University of Cincinnati Real Estate Program, suggests that as the housing stock across the country ages and older well-located markets increase in appeal the teardown phenomenon will become more common. In real estate terms, the driving force is that the value of the land far exceeds the value of the house that sits on it. From the viewpoint of a homeowner living in the areas affected, the greatest risk, he says, comes to those who are the first to invest in the much upgraded homes. Those who wait to upgrade face less risk. One of the potential drawbacks, Miller suggests, is a social one: gentrification, which forces lower-income households out of the neighborhood. California's Proposition 13, which keeps inflation-adjusted real estate taxes close to the level they were when the home was purchased, is one strategy to help ensure that households will not be forced to sell off to keep up with the accelerating property values. To date few states have been willing to follow California's lead on property tax limits, especially in an era of local government fiscal crises.
Contact: 513-556-7088
B. BOLSTERED BY INTEREST RATES
Tim Lockwood, vice president for professional development at the Ohio Association of Realtors, suggests that teardowns are an especially attractive alternative at a time when interest rates are so low - such as now. Upper Arlington, a suburb of Columbus, Ohio, has witnessed some teardowns, as well as Bexley, another suburb of Columbus, and the inner-cities. "I don't see that we need to be concerned about it at all. If that's what a homeowner wants to do and they can afford it, that's fine. It doesn't do anything to detract from the neighborhood and in fact adds value."
Contact: 614-228-6675
C. A TAX MINE FOR CITIES
Bruce Goetzman, UC associate professor emeritus of architecture, says, "Of course, there are always people who like a community the way it was. And, in many cases, those in the middle-income groups and retirees are priced right out of their own neighborhoods because as the real-estate values boom, taxes go up. So, municipalities tend to love the practice. It increases their tax base."
Contact: 513-281-7244
D. MORATORIUM ENCOURAGED
As a follow up to its 2002 report, "Protecting America's Historic Neighborhoods: Taming the Teardown Trend," the National Trust of Historic Preservation is planning an on-line resource guide on how to cope with or fight the teardown trend. Adrian Scott Fine says the National Trust recommends a number of strategies. In communities where teardowns have begun, it may be a good idea to step back and place a moratorium on teardowns, he says. This allows the community a chance to evaluate what's going on and decide if it's really in the community's best interest to allow demolitions to continue. Zoning changes or restrictions on the ratio of the housing area to lot size may also be prudent, he suggests. Another strategy is to use neighborhood conservation districts, which aren't as restrictive as a designated historic district, but help to ensure that traditional neighborhood character is not destroyed by demolitions or out-of-scale new construction.
Contact: 215-848-8033
E. NOSTALGIA: A RECENT DEVELOPMENT
For the most part, Frank Russell, director of the University of Cincinnati's Community Design Center, says the current knockdown trend isn't necessarily bad. In fact, it's the natural way for cities and communities to evolve. "Only our century has this nostalgia for old buildings. In the 18th and 19th centuries, it was routine to demolish old buildings and build new to meet new functional needs. We should always preserve some historic fabric, but if a building isn't historic, isn't functional and the land values support it, then it does make sense to tear it down and build anew," says Russell, adding that his only caution would be to question the enduring value of 'McMansions' that replace modest homes on small, "postage-stamp" lots. "Aesthetically and functionally, I wonder if the large-scale homes on tiny lots, where there's real congestion of building space and loss of green space, will retain value or not in the long run," he states.
Contact: 513-556-3283
3. WHERE THE ACTION IS
A. HOT SPOTS
The National Trust for Historic Preservation's 2002 report, "Protecting America's Historic Neighborhoods: Taming the Teardown Trend," focused attention on:
two neighborhoods outside downtown Dallas, where more than 1,000 early 20th-century homes were bulldozed to make way for homes of up to 10,000 square feet each;
Denver, where hundreds of homes, mostly brick bungalows from the 1920s and 30s, were demolished and replaced with larger houses;
Chicago, where since 1986, Hinsdale has seen more than 1,200 homes demolished, including 19th-century Victorians and Sears "kit" houses, and other sites across the nation.
The hottest spots are outside urban rings or resort areas such as Manhattan, the Boroughs, north New Jersey, Boston, Washington DC, Chicago, Dallas and Denver.
Contact: 215-848-8033
B. LOCATION, LOCATION, LOCATION
The current wave of "bash and builds" is most likely to occur in older neighborhoods that are desirable because of a specific reason, usually connected to coveted views: a seacoast location, a ridge or hilltop location, overlooking a river or a valley, says Bruce Goetzman, University of Cincinnati associate professor emeritus of architecture and past president/ founding member of the Ohio Preservation Alliance. Or, the practice may occur for no other reason than the charming, village atmosphere of a community. In Cincinnati, Goetzman points to the communities of Terrace Park, Indian Hill, Mt. Adams and Price Hill as ones in which more modest homes are routinely torn down and rebuilt on a grander scale or are dramatically expanded. He explains, "It may seem strange to put a $350,000 addition on a modest bungalow, but it makes sense when you look across the street and see a $1 million house that's replaced that modest bungalow. The movement does gather momentum in a community."
Contact: 513-281-7244
C. A RECENT CASE: MONTGOMERY, OHIO
In the suburb of Montgomery, north of Cincinnati, Ohio, teardowns and new construction are happening on both Zig Zag and Weller roads - mostly to ranch-style homes. Montgomery City Manager Cheryl Hilvert notes that on July 23 the Montgomery City Council will hear a presentation on teardowns and what, if anything, the city should do about them, at a working session scheduled to begin at 7 p.m. Wednesday, July 23. The report will be made by the Planning, Zoning and Landmarks Committee of the council. In the meantime, the city has taken steps to try to address some of the concerns of homeowners near where the teardowns are occurring - by requiring bonds for any damage that may occur to public property (such as right of way, streets, utilities, sidewalks, etc.) as well as requiring the construction companies to keep the areas clear of mud and park heavy equipment in certain areas.
Contact: 513-891-2424
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