A well-known builder of infill housing throughout California approached MetroIntelligence to help gauge appropriate pricing and absorption for one of their new projects in Fullerton. The only catch? Due to an agreement with the city which provided the land, these homes could only be sold to qualifying households which earned up to 80% of the countywide median income. When these original owners went to sell, they could only sell to similar households who would qualify under this deed restriction.
With this deed restriction in place and few new competitive comps in the area, it would be difficult to accurate gauge prices in a market that was still trending downward. However, after researching deed restrictions on for-sale housing in other markets, MetroIntelligence determined that any discount for the prices on these homes would be less than originally anticipated, thus giving the builder a healthy profit margin in an area badly lacking new housing. When the project was finally released, the combination of newer designs and an affordable price point helped them sell out within a matter of months.