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What I don't understand is why the government isn't building housing to sell. You'd put workers back to work, and prevent some of these crazy expensive prices.

What I don't understand is why the government isn't building housing to sell. You'd put workers back to work, and prevent some of these crazy expensive prices. It seems like all developers want to build are mcmansions and luxury apartments they can sell for tremendous profits. Where are the cheap starter homes and condos?

prostoalex 10y ago
The price tag on the final construction is defined by three things - cost of land, cost of labor, and cost or building materials (which includes things such as equipment rentals). Where would a government construction company experience massive price advantage that cannot be replicated by a private entity? Their cost of equipment is same as everybody else's, their labor costs are probably higher due to extra layers of bureaucracy and stronger union contracts.
- jdavis703 10y ago
  There's a lot of city owned land in the Bay Area, that would effectively cost the government nothing. Not to mention abandoned lots that should face stiff liens, and eventual seizure if nothing is done about it. Then they contract with the same builders that the private sector uses. But instead of building apartments with granite countertops and bathtubs with water jets, they use simple finishings (or just don't finish things at all, like in my apartment, the floor is polished concrete and the ceilings reveal the structural elements).
  - prostoalex 10y ago
    The primary reason for housing shortage is not real estate developer laziness and apathy. If Vegas, Florida or empty Chinese towns taught us anything, developers will build given a chance to appropriate a large budget or a cheap loan. How much of that city owned land is zoned residential, has no building restrictions and is set up for electricity, gas, water and roads? Most developers also present a choice of finishings, if you're committing to a brand-new construction, where one can go from custom Italian marble to basically nothing. KB Homes and Lennar are particularly known for no-frills simpler-designs cheaper units, check out South or East San Jose and anywhere in Morgan Hill / Gilroy vicinity.

prostoalex 10y ago

The price tag on the final construction is defined by three things - cost of land, cost of labor, and cost or building materials (which includes things such as equipment rentals). Where would a government construction company experience massive price advantage that cannot be replicated by a private entity? Their cost of equipment is same as everybody else's, their labor costs are probably higher due to extra layers of bureaucracy and stronger union contracts.

jdavis703 10y ago
There's a lot of city owned land in the Bay Area, that would effectively cost the government nothing. Not to mention abandoned lots that should face stiff liens, and eventual seizure if nothing is done about it. Then they contract with the same builders that the private sector uses. But instead of building apartments with granite countertops and bathtubs with water jets, they use simple finishings (or just don't finish things at all, like in my apartment, the floor is polished concrete and the ceilings reveal the structural elements).
- prostoalex 10y ago
  The primary reason for housing shortage is not real estate developer laziness and apathy. If Vegas, Florida or empty Chinese towns taught us anything, developers will build given a chance to appropriate a large budget or a cheap loan. How much of that city owned land is zoned residential, has no building restrictions and is set up for electricity, gas, water and roads? Most developers also present a choice of finishings, if you're committing to a brand-new construction, where one can go from custom Italian marble to basically nothing. KB Homes and Lennar are particularly known for no-frills simpler-designs cheaper units, check out South or East San Jose and anywhere in Morgan Hill / Gilroy vicinity.