Solution 2-D*:
Reduce land cost per home by encouraging higher density homeownership, including smaller, innovative home types.
What it does
The region has a shortage of homes that are priced in the “starter” home range between $150,000 and $200,000. One strategy for reducing price is by reducing the cost of land per home though greater density, which may be achieved by changing local land use regulations to allow for and incentivize the production of smaller homes that are inherently less expensive.
How it works
The region needs to begin producing smaller, less expensive homes. The availability of more land that can support multifamily condominium, townhouse, zero lot line, patio/cluster homes, alternative site plans, and even tiny homes will encourage the development of more of this type of housing.
Who is responsible
- Local housing providers, architects, land planners and engineers: design new and creative small homes and subdivisions
- Local planning staff: research and draft ordinances; undertake community outreach
- Local planning commission: review and recommend ordinances
- Board of supervisors or city council: take final action on adoption
Key challenges
- In some places, the public may have perceived fear of higher density.
- Mortgage financing restrictions may be encountered for certain types of small homes. Appraisers will also need to be educated as these new homes begin to enter the market.
- The market for condominiums remains less certain than traditional homeownership. Small condo buildings face financing challenges.
How it will help achieve the goal
Smaller, less expensive options for purchase will open the market to households that currently have no choice but rentals.Geography Tag(s)
Chesterfield, Hanover, Henrico, Richmond, AshlandNew or Existing
NewCreation or Preservation
CreationRequires New Funding
NoRequires new state enabling legislation
NoOther Solutions
- Solution 2-A*
Support and expand the community land trust homeownership model.
- Solution 2-B*
Create a regional center for homeownership that is a one-stop resource hub.
- Solution 2-C*
Build a region-wide, racially equitable homeownership program.
- Solution 2-E
Increase the number of residential zoning districts where manufactured homes are permitted.
- Solution 2-F
Adopt transfer of development rights (TDR) programs to increase housing options.
- Solution 2-G
Build smaller, less expensive homes to meet market demand and replace poor-quality housing.
- Solution 2-H
Support and expand the regional land bank to create more options for housing development.
- Solution 2-I
Increase the number of non-traditional homeownership units across the region (e.g. co-housing, cooperatives, etc.)