| THE TEARDOWN EFFECT - Hinsdale Face-Lift
May 25, 2007
By:
Suburban Life - Seth Ufheil
RE/MAX Elite
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Hinsdale, IL 60521
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Suburban Life
Sunday, May 20, 2007
By: Seth Ufheil
THE TEARDOWN EFFECT
HINSDALE FACE-LIFT
Most natives hate it. Most newcomers love it. But no matter what side of the street you’re on, there’s no arguing that the teardown boom has transformed Hinsdale’s housing market and neighborhood feel in the past two decades.
THEN & NOW Snapshots of the Hinsdale housing market. The average home sale price in Hinsdale has more than tripled in the same years as demolition permits, required for a teardown, have more than doubled. Here's a look at the numbers:
$331,814 - Average sale price of a Hinsdale home in 1992
$1,026,763 - Average sale price of a Hinsdale home in 2005
46 - Number of demolition permits filed in 1992
118 - Number of demolition permits filed in 2005
Hinsdale's average single-family home sales price: 1992 to 2006
| YEAR |
TOTAL SALES |
AVERAGE SALE PRICE |
| 1992 |
559 |
$331,814 |
| 1993 |
658 |
$348,809 |
| 1994 |
400 |
$378,239 |
| 1995 |
354 |
$423,337 |
| 1996 |
392 |
$470,504 |
| 1997 |
345 |
$496,544 |
| 1998 |
417 |
$510,798 |
| 1999 |
437 |
$565,772 |
| 2000 |
368 |
$705,418 |
| 2001 |
337 |
$755,174 |
| 2002 |
386 |
$799,388 |
| 2003 |
361 |
$854,108 |
| 2004 |
398 |
$972,131 |
| 2005 |
356 |
$1,026,763 |
| 2006 |
260 |
$1,099,317 |
Note: No listing data available for Hinsdale prior to 1991.
Source: Multiple Listing Service of Northern Illinois Inc. of Lisle
Demolition Permits
Number of home demolition permits issued by Hinsdale's building department between 1986 and the first three months of 2007
| YEAR |
PERMITS |
YEAR |
PERMITS |
| 1986 |
4 |
1997 |
63 |
| 1987 |
42 |
1998 |
116 |
| 1988 |
65 |
1999 |
114 |
| 1989 |
68 |
2000 |
100 |
| 1990 |
29 |
2001 |
88 |
| 1991 |
30 |
2002 |
102 |
| 1992 |
46 |
2003 |
85 |
| 1993 |
62 |
2004 |
104 |
| 1994 |
116 |
2005 |
118 |
| 1995 |
51 |
2006 |
76 |
| 1996 |
62 |
2007 |
*22 |
*Figure through March
As More Homes Come Down, Village Remodels Its Image
Elizabeth Barrow of Hinsdale takes little pride living in a town that has been called the teardown capitol of the nation.
“It literally takes a village to save a house here,” she laments.
Barrow, 62, and her husband, Ed, have witnessed the changes in their community during three decades from the steps of their 137-year-old home in the 300 block of North Washington Street.
The Barrows’ two-story 1870 farmhouse, which is one of the village’s original homes, has become a sort of an endangered species in Hinsdale.
For nearly three decades, the teardown craze has seen older—and sometimes historic—homes toppled with stunning regularity. Towering structures catering to more modern living have been built in their place. Those homes avoiding demolition, such as renowned architect R. Harold Zook’s 1924 home and studio, two year ago required a villagewide effort to save it from a developer’s wrecking ball.
The Barrows’ viewpoint on teardowns is one of many. The trend arguably has ushered in both good and bad characteristics to a town whose identity has largely been remade as a result.
Demolition Derby
Hinsdale teardowns began in earnest in the late 1980s and peaked about two years ago when a record 118 homes came down, according to the village.
Village Building Commissioner Robert McGinnis said more than 1,500 homes—about a third of Hinsdale’s housing stock—have been replaced by new structures since the village began keeping records of home demolition in 1986.
Since then the average has hovered around 72 homes a year. But seven times in the 12 years, that number has met or exceeded 100 demolitions, according to the village.
McGinnis, who has been on the job for a year, said most homes replaced were those hastily built on concrete slabs after World War II. Also included in that group are an estimated 15 to 20 homes whose history might have warranted preservation, but instead the residences were torn down, he said.
Facts & Figures
$767,503 - Total increase in the average home sales price in Hinsdale from 1992 to 2006
1,500 - Estimated number of homes - about one-third of Hinsdale's housing stock - that have been torn down since the village began keeping records 20 years ago
118 - Peak number of teardowns in one year, 2005
Who's building, buying?
Jim McMahon has no problem with teardowns, and sees their benefit to town.
McMahon is a Hinsdale resident who owns J.P. McMahon Builders, which custom builds ingle-family homes in the $5 million range. McMahon built such a home on the Zook’s former lot.
He said his ability to buy property from residents to tear down their homes and build new often nets them millions. It also raises everyone’ property values.
“I have purchased the majority of my teardowns from elderly folks who are headed into retirement and their residence is their single largest asset,” McMahon said.
Without being able to knock down those residents’ homes, the sale would result in hundreds of thousands of dollars less for the seller, and less development in town, he said.
John Bohnen, broker/owner of County Line Properties in Hinsdale and longtime resident, said teardowns also help meet the needs of those buyers seeking to move into town.
“Seven out of 10 customers want a brand-new house,” he explained.
Empty-nesters, or adults with grown children, and families are equally interested in $1 million homes to escape condominium-living, without the maintenance needs of an older home.
“Older houses have to be in great shape or they are going to be afraid of it,”, Bohnen added.
Here to Stay
At the same time teardowns have occurred, the average home sales price in Hinsdale has soared, increasing more than threefold since 1992 to $1.1 million, according to Multiple Listing Service of Northern Illinois Inc. in Lisle.
Additionally, new families who have enrolled their children in Community Consolidated School District 181 have helped bump the district’s enrollment 1.5 times to more than 4,000 students.
Still, Barrow, a resource teacher at District 181’s Oak School in Hinsdale, said change has not been entirely good.
Next door to the Barrows is one of the original Hinsdale teardowns built about a decade ago that has seen several family and empty-nesters come and go.
High turnover has stolen the Barrows’ sense of neighborhood and community.
“I understand for some, financially, there is no better choice than to sell to builders,”: Barrow said.
“But we certainly have failed in trying to stem the flow.”
POINT: What has been lost
Elizabeth Barrow, Historic Preservation Commission member
What have I lost as a resident of Hinsdale in almost two decades of teardowns?
A sense of familiarity as I drive or walk around the village, as I have done for more than 30 years. A sense of permanence in my own neighborhood instead of alarm as a house goes up for sale. I have lost privacy, trees, green space and permeable areas of water absorption.
I miss the streetscape of the village that included lawns and gardens to enjoy instead of turnaround driveways and front parking areas. I have lost the enjoyment of viewing many different house facades of varying age and styles that have evolved over centuries to the view of front-loaded garages.
I have lost the peace and quiet of a small established village as construction sites and trucks and vehicles clog street and neighborhoods year after year.
Collectively , we have lost room in our landfills, as house after house is demolished and dumped in our land, with no recycling of materials.
We have lost variety in size and price of homes in our village and the ability of those with different income levels to reside and work in our village. With the destruction of more than one-third of our existing housing stock, I have lost the memories those homes provided of friends and neighbors who lived there and homes of friends of my children.
Most importantly, we have lost a unique and historic gem in the western suburbs that had contained over 130 years of our history. What a shame for future generations.
COUNTERPOINT: What has been gained
James P. McMahon, owner, J.P. McMahon Builders of Hinsdale
Teardowns have greatly benefited the community of Hinsdale and the surrounding suburbs in many ways. A significant benefit coming to mind is the increased financial equity new construction has created for all property owners.
When I started my company in 1997, I was paying $19 per square foot for land. Ten years later, that number has quadrupled to $75 to $90 per square foot. That would not have been possible without teardowns and the new development that follows.
Newly built single-family homes have made these neighborhoods highly sought after by potential home buyers, which has further driven up the price of real estate. Also, teardowns are replacing inferior structures that usually are an eyesore to the block with floor plans and finishes that just do not meet the needs of today’s family.
The one benefit that you never hear anyone talk about is the financial security created by teardowns for elderly people. I have purchased the majority of my teardowns from elderly folks headed into retirement, and their residence is their single largest asset. Take for example a home I purchased at 24 E. Ninth St. in Hinsdale. I paid $1.2 million for this property with a structure not fit for occupancy.
If teardowns were not allowed in Hinsdale, this property would have sold for no more than $350,000 and the elderly woman would never have obtained that sizeable nest egg to secure her retirement.
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