The City of Rancho Cordova is currently considering changing zoning code in a way that would essentially do away with garage conversions. Basically, the new code would allow a garage conversion only if the property owner built another garage somewhere else on the parcel (which effectively means nearly all properties will not qualify for a conversion). The slide below is from a presentation on May 24, 2011 at a council work session. See the entire slideshow here.

The main reason for this conversation and potential change is about curbing blight in neighborhoods since garage conversions often contribute to a decline in property value. However, while it’s true that an individual property usually sells for less when the garage is converted, the real question is whether a garage conversion on a street results in other properties losing value. How much market weight does one conversion have for an entire street or tract?

Questions: Do you think garage conversions contribute to blight? How so? Is this a good move to help increase property values? Where is line between what a city can do to boost real estate values and the rights of residents? What blight issues make the most negative impact on value in a neighborhood? Are you aware of other cities or areas where conversions are illegal? Would making conversions illegal be a negative factor in the eyes of buyers? I’d be curious to hear your constructive thoughts below.

NOTE: I will update this post at some point to let you know what is decided on the issue. Again, this is only conversation among City Council right now.

If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.