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>so why would a developer purposely build shitty housing when the rental price wouldn't be appreciably lower? Because it'd be a lot cheaper to build and you co
by nck4222 10y ago
>so why would a developer purposely build shitty housing when the rental price wouldn't be appreciably lower?
Because it'd be a lot cheaper to build and you could charge the same rent?
I'm not really sure what your point is here. If the cost of renting was completely location based and not quality based, developers would construct the cheapest housing possible in the most desirable locations - they wouldn't be building luxury housing.
- Kalium 10y agoI believe developers currently build "luxury" housing as cheaply as they can and still command the same high rents. You're correct that it is possible for developers to build much lower quality construction and command the same prices. However, this is only true in a scenario where all developers do the same thing. Generally, developers have some level of competition discouraging that - other developers, existing stock, etc. (EDIT: Also, much of the cost of construction in areas such as SF is land. Cheap construction doesn't make land cheaper.)
- RangerScience 10y agoThis is my experience. There are three identical "luxury" apartment buildings around me. There are another 4-5 new construction "luxury" buildings that aren't identical. But, all of them are >$400 than what I have now, and worse in all sorts of subtle ways (mostly - mediocre kitchens). The identical buildings are probably the worst offenders, and the converted old building is probably the best.
- ng12 10y ago> Because it'd be a lot cheaper to build No, the point is it wouldn't be a lot cheaper. Granite countertops aren't more expensive in NYC than they are in Topeka. Compared to the price of the property making an apartment "luxury" is pretty cheap.