Iceberg House Trend A Good Idea

Q: What do you think about the iceberg house trend, Gerald? Tim, Bergenfield, NJ

A: Iceberg houses are homes that have a large underground space, the phrase conceptually comes from an iceberg, which is a huge piece of floating ice whose mass is mostly underwater. The trend of building down instead of up has become popular in places that have strict building height regulations and/or high land costs. Iceberg home owners expand downwards instead of upwards in underground spaces to install amenities like theatres, gyms and swimming pools.

There are towns and municipalities that have expressed concerns about the potential impact of subterranean construction on drainage, stormwater management, and the foundations of adjacent homes. A homeowner can choose to add space above or below ground, however, a home addition built above ground will generally add significantly more value to a property compared to a below-ground addition because appraisers typically value above-ground living space at a much higher rate per square foot than below-ground space–for example, a finished basement will usually add only a fraction of the value of an equivalent-sized addition built above ground level in a home. Thanks for your question, Tim.

Thanks for your question, Alan.

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