Cheap subdivisions surrounded by more upmarket ones

[Import]

I am curious if anyone has witnessed the effect of a cheaper subdivision going up in an area previously reserved for much more expensive ones? Is the value of the cheaper houses likely to go up over time because of the area? Or will the value of the more expensive houses likely go down substantially?

I have just moved into a rental home in a new KB Homes subdivision. Prices for sale are advertised as 130s to 170s. Most of the other subdivisions in the area are a lot more expensive than this one...

We directly overlook the back yards of the $400-700 K homes in the next door gated community *and* get a free view of their lake. I keep thinking that the people in those houses can't be real happy about the situation - and I also wonder if there was anything they could have done about it?

[westguy76]

let me guess, Westgreen Park?? do I get a cookie

[Import]

let me guess, Westgreen Park?? do I get a cookie

A whole box of cookies

Now I would have thought that the resale value of the surrounding homes would have dipped - but a friend argued that maybe the opposite is true - that once those nasty KB flags go down this subdivision might appreciate because of the area.

[Guest danax]

Just pondering too, but I'd say if it's truly surrounded by much greater values then the old saying. "a rising tide lifts all ships" would probably apply but on the other hand the KB would likely have a negative impact on the others too to a smaller extent, especially if the KBs nabe starts looking ratty and become largely rentals (no offense) over time.

[Import]

Just pondering too, but I'd say if it's truly surrounded by much greater values then the old saying. "a rising tide lifts all ships" would probably apply but on the other hand the KB would likely have a negative impact on the others too to a smaller extent, especially if the KBs nabe starts looking ratty and become largely rentals (no offense) over time.

That makes sense. The subdivision is very mixed ethnically which I guess *some* would see as a minus. But actually so far most of the families moving in seem to be very "respectable" and many seem to have bought the houses with the thought of getting a lot of house for the money and then making upgrades. There are plenty of nice cars and landscaping and swimming pools going in which would suggest they haven't overextended just to get something to impress their friends iykwim.

With people in who care about their environment the subdivision could actually look OK over time. Although (no offense to KB homeowners) with many of the houses there will never be any hiding the fact that they are big cheap square boxes with absolutely no architectural merit.

(And no offense about the rentals I personally would not want to live in a largely rental neighborhood either)