The other day, an appraiser mentioned to me that he had just completed a study comparing the prices of one-story houses vs. two-story.
He had done a similar study ten years ago, and found that the premium being paid for a one-story then was about 5%.
Today, he found that the premium is about 14% – more than double!
We speculated whether it would double again over the next ten years. When you consider how short the existing supply of one-story homes is today, and that builders are still addicted to the two-story model, it is pretty easy to guess the premium will increase further!
Here’s a sample of houses sold between La Jolla and Carlsbad this year.
NSDCC Houses Between 2,500sf and 3,500sf Sold 2017 YTD
|# of Stories|
You can get a better ‘deal’ on a two-story home, but as boomers get older and unload two-story houses, that market could get glutty, and the quality one-story houses be even more sought-after.