4 ms·
>Yet that appears to not be the case either - as buildings get taller and more dense, costs seem to increase outside the direct supply/demand system [3] and tho
by rory096 8y ago
>Yet that appears to not be the case either - as buildings get taller and more dense, costs seem to increase outside the direct supply/demand system [3] and those units which are built are typically more expensive then low density options.
This is a correlation/causation error. Prices rise beyond marginal cost of constructing an additional unit in the presence of supply restrictions and increasing demand. Those conditions are often true in areas with high rise buildings (and the second is rarely true in areas without).
Separately, the marginal cost of construction is higher for a unit in a high rise than a unit in a single-story building.