By Liz Segrist
lsegrist@scbiznews.com

Naomi Doner expected more neighbors, not a fight over who will fix damaged roads in her unfinished subdivision.

Only about 30 of 146 lots at Spring Lakes in Lyman have filled, including Doner’s, as the recession-logged housing market continues to leave its mark on the Upstate.

“I thought it would fill up quicker,” said Doner, who has lived there since June 2010. “We’re enjoying the serenity, the quiet and the open space. However, it would be nice to have neighbors all around and the sounds of children laughing.”

Developers, realtors and builders are struggling to fill developments created with pre-recession mindsets in the post-recession reality. Housing developments planned for 700-plus homes are hosting 50 homes or less. Doner’s situation is not unique.

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Many homeowners in unfinished developments are living semi-country lifestyles though they signed up for suburbia. Some cities have enacted ordinances to protect homeowners in new subdivisions by ensuring roads and infrastructure are created and maintained when developments run dry. But as far as attracting neighbors and preserving home values, residents like Doner are forced to watch the market play out.

Doner, a semi-retired accountant at a Greenville law firm, said she chose the neighborhood for the price, quality and her respect for the builder, Adams Homes. The infrastructure was in place prior to moving in. The roads have since incurred large potholes and a battle ensued over who was responsible to fix them, she said.

“It was my one concern with moving into a new community that it might not make it, especially in these hard economic times,” Doner said. “If we were younger it would be different, but we’re retired and we know that we can sit here for the next 20 years and wait for the market to turn around.”

Despite the slower-than-expected progress, Doner has high hopes for her Lyman community as the rolling hills and lake set the scene for retirement.

“I already see some homes on the way to picking up in price,” Doner said. “I have faith in this community and I want people to come here.”

The recession has slowed development progress at Verdae Development Inc. off Verdae Drive in Greenville. It currently has 30 single-family detached homes. The master plan calls for 750 homes. Verdae Development President and Chief Operating Officer Rick Sumerel said the development could be on a slow and steady upswing now.

Similarly, the Acadia Community in Piedmont has five neighborhoods with a capacity up to 700 dwelling sites, including single-family home lots, townhomes and condominiums. It currently has 50 occupied sites. Acadia Developer Caleb Freeman said the community is behind projections because of the economy.

Verdae emphasizes a community lifestyle with commercial space, parks and public space. A prospective buyer driving into the development would be greeted by a patch of large homes, the bustle of construction and families playing in the park.

Further into the development they would see tree-filled, overgrown lots waiting for homes. Sumerel said the upkeep, streetscaping and infrastructure enables Verdae to maintain continued activity and see some movement with spec inventory.

“You go to a lot of developments and the lots are just sitting there,” Sumerel said. “Everybody would love to see more activity. No one wants it more than us, but there is movement. People are moving in.”

Dr. Joseph and Janice Holliday sold their house in October 2009 and decided on Verdae for its central location and good reputation. They purchased a lot on a cul-de-sac with two other houses and empty lots.
The house is under construction and they expect to move in this fall. Dr. Holliday will also be part of Verdae’s commercial development when he opens his dentist practice there.

“It’s so rare to find a vast amount of acreage and be surrounded by woods in the middle of a city,” Janice Holliday said. “The people behind Verdae are long-time Greenville residents like us and they have a vested interest in its success. We have faith it will fill up and until then, we’re enjoying it.”

Post-Recession Market
Following the recession, houses are kept on the market longer; loans are harder to receive from banks and many subdivisions are left halfway finished, said Realtor Marsha Wright with ReMax Realty Professionals. Homeowners might be left without expected infrastructure, roads or neighbors. Other lots might be sold for much cheaper, effectively dragging down the value of homes of developments’ earliest purchasers.

“I’ve been a successful realtor in Greenville for 20 years and when the economy went south, it took me with it,” Wright said. “The biggest investment people make is in their home and the homeowner’s investment is definitely in jeopardy for these unfinished developments.”

Greer Mayor Rick Danner said his city created some ordinances during the housing boom that unexpectedly served residents of idle developments well during the recession. Nuisance abatement ordinances were originally created to meet certain community housing standards.

More coverage Abandoned developments leave mark on environment Evidence of erosion and sediment impacting the water bodies and aquatic ecosystems has been noted at idle developments in the Upstate.

The ordinances require developers to put up a bond prior to developing to pay for roads, infrastructure and maintenance, whether the development is completed or not.

“If only 12 houses were completed in a development designed for 48, this would prevent 36 vacant lots from becoming overgrown with varmints running in it or from being covered with debris from construction,” Danner said.

Some housing activity and construction is seeing a pick-up in the Upstate. Since January, Verdae had six families finish construction and move in; six more homes undergo construction; and three more lots purchased.

The townhomes project had one of the three units pre-sold. Verdae recently broke ground on commercial developments and sold three of the seven lots.

“We were not recession proof, but we like to think the track record shows resiliency to the recession,” Sumerel said. “As of mid-year, we’ve far exceeded what we did all of last year. We are sort of seeing a pick-up. We are pragmatically optimistic.”

Acadia’s phase one of the multi-year project is nearing completion and custom home lots are beginning to sell in phase two. Freeman said custom lot sales have been very slow in recent years. Buyers have trended more toward luxury townhomes staring around $270,000.

“The trend for people is toward smaller yards, smaller houses and more affordable price points,” Freeman said. “People call it downsizing, but I think it’s rightsizing. It’s a long-term trend for the next four or five years, at least.”

Some neighborhoods continue to devalue over time as developments remain unfinished. Wright is selling a lot in Laurel Trace in Piedmont that originally went for $27,000. It’s now being sold between $10,000 and $16,000. She said no one is calling about lots, causing them to stay on the market much longer than before the recession.

Freeman attributes the sense of community and active, outdoor lifestyle of Acadia to the development’s future and residents’ enjoyment. Freeman said market improvement is on the horizon and it is contingent on the home buyer’s confidence.

“Their confidence has been rattled, but it’s started to get back to a realistic expectation of what the future holds,” Freeman said.