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In an interesting turn, Austin banned the building of McMansions in certain neighborhoods in the city. While some folks need are pleased, many homeowners are not pleased as they are concerned that it will hurt their property values in the future.

Atlanta tried to ban McMansions, but the city council voted it down because it could give economic advantages to certain groups to the detriment of others. So the McMansion ban got canned. My bet, this will be happening in Austin shortly too, or the courts will get involved.

The McMansion ban prohibits houses more than 2,300 square feet or over 40 percent of their lot size in most central Austin neighborhoods. Proponents say it’s needed to protect the look of an area of town built back in the days when elegance prevailed over excess.
But detractors fought hard to keep the ordinance off the books, arguing nigh unto 4 o’clock in the morning that it will slash property values in affected areas and undermine land owners’ investment expectations.
The Austin Home Builders Association even took out a large-format ad in the Austin American-Statesman June 8 depicting an elderly widow in despair over her real estate portfolio’s diminished value at the hands of the new ordinance.
“She trusted the city to play fair. Now she could lose it all,” the ad read. “Austin’s City Council has imposed a moratorium on various construction practices which has caused her and many property owners like her to lose as much as 50 percent of their investment.” via Austin Business Journal:.

Related posts:

1. McMansions (More Like Gentrification) Coming To The Cities
2. Atlanta McMansion Tear Down Moratorium
3. Atlanta McMansion Moratorium Cancelled by City Council
4. FTC Stops Austin Board of Realtors From Blocking Discount Brokers
5. Houston and Austin Real Estate Markets are Still Strong