Once a popular trend a decade or two ago, teardowns are making a return as builders seek to overcome the low inventory issue.
MarketWatch reports that home builders purchase desirable properties in good locations, tear down the structure, and build new homes, even without a buyer waiting. Teardowns are reportedly becoming more common in places like Boston, Chicago, and Portland, Ore.
Home preservationists argue that renovating existing properties is a better option. Renovations maintain a home’s charm and character, and keep the house in line with surrounding homes in the neighborhood.
Still, it’s not difficult to see the case for building new. Many buyers want open floor plans, and houses built before a certain time period typically don’t have them. Older houses also can require electrical rewiring or replacement of the plumbing.