The High Price of Paradise: Buying a Home in the Hudson Valley
by Cait Johnson

While this particular corner of the Hudson Valley is gaining status as a homeowner's paradise, the cost to the region may be greater than any of us can afford. Not only have house prices increased dramatically, but the shortage of available homes is forcing many would-be Hudson Valley homeowners to consider building their own--and that may spell trouble for the area's ecology and scenery.

Who can blame those who want to live here? When asked to describe the area's appeal, real estate agents often wax lyrical. "There's such a gentle aesthetic here, overall," says Lance Lavender at Helen Battistoni Ltd. in Rhinebeck. "Rhinebeck is beautiful, charming, historical. And I think 'village' is a very attractive word to a lot of people. There's a sense of community; there are people here with roots that go all the way back to the 1700s."

Many realtors cite safety, excellent schools, and convenience as major factors in this area's growing reputation as a homeowner's paradise. "Here you don't have to pay for private schools," said Jane Knobloch of Jane Knobloch Real Estate, Inc. in Red Hook. "People are looking for a safer place for their children. And a lot of people are doing telecommuting now. But if they have to go into the city, it's easy from here."

Everyone agrees that landscape is key. The gently rolling hills and fields, sweeping panoramas of river and mountains, the soothing sense of open spaciousness are all part of the draw. It makes sense that so many people, especially those who long to escape from New York, would want to make this area their home. The problem is, there just aren't enough homes to go around.

"Inventory is really low," Dan Staley, of Staley Real Estate in Rhinebeck, told me. "What we're seeing here is an earthquake effect, with ripples going all the way out to Saugerties, Pine Plains, Germantown. People want to live here, prices are rising, but there aren't enough homes available."

"We're in a potential Catch-22 situation," reports a house-hunting friend. "If there aren't enough houses, then you have to build more. But if every field and hill breaks out in a rash of subdivisions, then we've lost the scenery." That scenery is what many of us cherish about this area--and what often draws people here in the first place."

It is starting to look like some development may be inevitable, so it was somewhat reassuring to find out that several of the local realtors I spoke with have a deep commitment to growing with consciousness. Jeff Ackerly, the Sales Manager for Prudential Serls in Red Hook told me, "I used to run the gardens at Mohonk. I have a real connection to land." Jeff is on the board of the Smart Growth Alliance for the Hudson Valley, and the Agricultural Committee for the Town of Red Hook, all dedicated to preserving open space. "Yes, there's growth pressure," he says, "but we can develop in a conscious way." Jeff sees his real mission as education. "I'm starting a focus group for people who want to build, on how to do it intelligently. We have to keep the rural, agrarian feel of this area."

Scenic Hudson, a regional environmental non-profit organization, was the catalyst behind formation of the Smart Growth Alliance. Kerri Karvetski, Scenic Hudson's senior editor, says, "We can't be anti-growth. Development isn't bad--bad development is bad. There is a real underlying hope in this area that we can build green, workable, compact communities that preserve open space and the historical character of the region."

Gary DiMauro, owner of Gary DiMauro Real Estate, Inc. in Tivoli, agrees. "Large tracts of land where it really makes a difference have been put under conservation easements. That's a good thing: there is tremendous value in open space." DiMauro continued, "There isn't a concerted effort on the part of local developers to do subdivisions. It's not what buyers want. What we're seeing is scattered building, people wanting to get creative. There's a real commitment here to preserve natural beauty."

"Building actually isn't as toxic as people think," agreed Lance Lavender. "I think this area is following Millbrook's lead, with larger estate lots. And there are so many great architects and great builders here. You can get a really beautiful final product."

Paul Hallenbeck, owner of Paul Hallenbeck Real Estate in Rhinebeck, credits good zoning with helping to keep the beauty of this area intact. "It's not like Southern Dutchess, all those houses in close proximity," he said. "Here we're zoned three, maybe five, often ten-acre lots. We can keep that spacious country feel." But if we see new homes sprouting every three or five acres, we're still looking at a huge impact on the scenery--and on our ecology.

While it seems that we may not be in any imminent danger of the cheek-by-jowl subdivision ugliness many of us came here to escape, the building of large houses that only wealthy weekenders can afford, and which eats up just as much open space, hardly sounds like the "compact communities" concept envisioned by Scenic Hudson.

And what about pollution, and the impact on plants and animals that depend upon the land for their survival? Erik Kiviat, Executive Director of Hudsonia, a non-profit ecological research institute, responded, "As residential land-use intensifies, an inevitable consequence of more people per square mile is increased pollution--more houses, roads, wells, and sewer systems alters the quality of the soil, water, and air. This affects the quality of habitat available and will lead to the disappearance of many plants and animals. Rare species, or those who are more sensitive to pollution, will die. People can make land-use decisions that reduce impact, but that impact cannot be eliminated."

What, then, is "conscious development?" Kiviat says, "Builders need to know what's in the area and put developments where they will do the least harm. This is not just about aesthetics. People must understand how species are distributed and avoid building in areas where there are rare or sensitive species. We need to leave wide buffer zones around streams, lakes and wetlands."

Concerns over the impact of building aside, the prices for precious pre-existing homes available are soaring beyond what many of us can afford. Home prices have risen 40% in the past three years, a whopping 15% so far this year. Lower interest rates help to mitigate this somewhat, but I was told that a "median-priced" house in this area now goes for around $300,000. This seems a bit out of reach to ordinary mortals like me, but there are those who can pay the increasingly high prices for a piece of the Hudson Valley without batting an eye. "It's not exactly a mass exodus," said Gary DiMauro, "but wealthy New Yorkers are coming up here in a steady stream."

What about local people? Can we afford to stay?

Paul Hallenbeck says, "Young local couples looking to buy their first house may be having some trouble. But if their credit is sterling, they can still buy a home in this area, especially if their parents can help them. We work with some great mortgage agents. It can be done."

Jeff Ackerly stresses the importance of thinking creatively. "There are a lot of seniors living in Rhinebeck village who just can't keep their places up anymore. If we could figure out affordable, decent senior housing, that would free up a lot of village homes for families with children."

And there is always the modular option. "Nobody wants to see the bulldozers rolling down their road," says Doreen at Creative Homes, Inc. a modular-home builder in Red Hook, "but people have exhausted the retail market. Modulars are perfect for families that need affordable housing. And I think people don't realize how attractive a modular home can be. You have real leeway for your own creativity, you can put your own stamp on it."

Meanwhile, I've been thinking seriously about yurts. And I'm told that chicken coop down the road has great potential.