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The average cost per area unit to build a new house has remained roughly stable for the past 40 years, houses are mostly more expensive because they are bigger

The average cost per area unit to build a new house has remained roughly stable for the past 40 years, houses are mostly more expensive because they are bigger (and because the land they sit on is often very expensive). The profit reaped by the house buyer is in the significantly higher quality and comfort (and safety and energy efficiency) of an average home built today vs. an average home built 40 years ago, if not in the price actually paid. However, I would venture a guess that if you contracted to build a house to 1970s standards (leaving aside the legalities of doing that), you'd come in significantly below the average cost of new builds. https://www.aei.org/publication/todays-new-homes-are-1000-square-feet-larger-than-in-1973-and-the-living-space-per-person-has-doubled-over-last-40-years/ https://www.aei.org/publication/todays-new-homes-are-1000-sq...

ArkyBeagle 11y ago
Drop back one level of indirection and it looks like houses are more expensive because people want them to be more expensive. Edit: I've tried to short ( by buying cheap ) this process multiple times and failed. You must be able to control timing of sale of the property or it won't work. And people who have credit now want more expensive property for inscrutable reasons ( like not understanding investment v. expenses ).
- eli_gottlieb 11y ago
  > Drop back one level of indirection and it looks like houses are more expensive because people want them to be more expensive. Houses are more expensive because they're built mostly for the people who can afford more house.
Retric 11y ago
This assumes the builders and buyers of houses are on the same page. Instead builders generally go up market and lower income buyers are stuck with older homes. Over time the U.S. economy is suck with aging BMW's instead of civics. You often see the same disconnect between efficency's and 1BR apartments. PS: Even really cheap things are missing. Such as a drain in a kitchen / bathroom incase of a leak or overflow. Ductwork in the walls for cables. Insulation tends to be half assed unless required for code, because it's not visible and builders are not suck with energy bills. Let alone something like solar hot water heaters.

ArkyBeagle 11y ago

Drop back one level of indirection and it looks like houses are more expensive because people want them to be more expensive. Edit: I've tried to short ( by buying cheap ) this process multiple times and failed. You must be able to control timing of sale of the property or it won't work. And people who have credit now want more expensive property for inscrutable reasons ( like not understanding investment v. expenses ).

eli_gottlieb 11y ago
> Drop back one level of indirection and it looks like houses are more expensive because people want them to be more expensive. Houses are more expensive because they're built mostly for the people who can afford more house.

Retric 11y ago

This assumes the builders and buyers of houses are on the same page. Instead builders generally go up market and lower income buyers are stuck with older homes. Over time the U.S. economy is suck with aging BMW's instead of civics. You often see the same disconnect between efficency's and 1BR apartments. PS: Even really cheap things are missing. Such as a drain in a kitchen / bathroom incase of a leak or overflow. Ductwork in the walls for cables. Insulation tends to be half assed unless required for code, because it's not visible and builders are not suck with energy bills. Let alone something like solar hot water heaters.