When Lawrence builder Tim Stultz looks out over the increasing number of duplexes and townhomes being constructed in the community, he sees smart growth in action.

But he and others also see the trend as a sign of a community trying to cope with an affordable housing problem.

Tim Stultz's Highland Construction was one of several companies building duplexes at a record pace in 2001. City building officials issued 168 duplex permits during the year, with a construction value of 6.7 million.

Stultz’s Highland Construction was one of several companies building duplexes at a record pace in 2001. City building officials issued 168 duplex permits during the year, with a construction value of $26.7 million. The total was more than triple the number of duplexes built in 2000 and comfortably ahead of the previous record of 122 in 1996.

Stultz said his company has jumped into the duplex market for reasons of cost savings both for the community and the home buyer.

“This is smart growth,” Stultz said. “This is eliminating urban sprawl. It is utilizing city services better. By putting two units on one lot you have a higher-density population, and a higher-density population won’t need as many fire stations, as many police stations and your infrastructure won’t be stretched as far.”

Many people in the real estate community agree that rising housing costs are what is driving much of the duplex construction.

“Quite frankly, when it comes to new construction, our starter home market has moved to townhomes,” said Mark Buhler, sales manager at Stephens Real Estate. “You can buy a new starter townhome for around $100,000 and you can’t do that anymore with a new single-family home.”

‘Filling the needs’

Stultz agrees that increased duplex construction is partly in response to builders looking for solutions to high land prices in the Lawrence area.

“I’m trying to create some affordable housing,” Stultz said. “Density is how you accomplish that. A stud basically costs everybody the same amount, so to get something affordable, you have to take a different look at how you use your land.”

Not everyone is convinced a greater reliance on duplex construction is the best long-term solution.

“I think it would be more desirable if we didn’t have to rely on those quite as much,” said Larry Midyett, broker and owner of Century 21 Miller & Midyett Real Estate. “A lot of it has to do with the client, but the traditional family, I’m convinced, usually still wants a single-family home on a single lot. But the townhomes are filling the needs. They’re attractive to single women, single men, couples without children, for example.”

Buhler said new construction methods have eliminated many of the concerns people have about sharing a “party wall” between the two units. Plus, he said more and more people are beginning to believe that bigger isn’t always better.

“Probably the biggest drawback is you don’t have as big a yard as you would otherwise, but some people don’t want a big yard,” Stultz said. “What’s a drawback for some is an advantage for others.”

The answer?

How long duplex construction will remain a hot trend remains to be seen. But it might be for awhile because real estate professionals admit there’s no easy answer to the rising price of Lawrence land.

Midyett said the ultimate answer probably lies in the city spending the money and effort to provide infrastructure for large new areas to be developed like south of the Wakarusa River.

“We seem to have this policy of smart growth, but what we’re really talking about is limited growth and that is going to drive the prices up,” Midyett said. “The way we can keep affordable housing is to be a leader, and the only way you can do that is be out front. You can’t keep saying ‘whoa’ all the time.”

Buhler, a former Douglas County commissioner, agrees that opening up large areas of land for development may create enough changes in supply and demand to make land prices more affordable. But he knows opening up those lands won’t be easy.

“Historically, we have been worried about how much land we open up for development. We have been nervous about that as a community,” Buhler said.

“I believe in the concept, but I’m not sure we’ll see the support for it.”