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"a 2000 sqft house costs less than 2x to build than a 1000 sqft house, but within the same hypothetical neighborhood, will probably cost 2x or more" That's cer
by notacoward 8y ago
"a 2000 sqft house costs less than 2x to build than a 1000 sqft house, but within the same hypothetical neighborhood, will probably cost 2x or more"
That's certainly not true where I am. The lot is 75% or more of the total value. Even if the bigger house is 4x the value for 1.5x the build cost, that's still not 2x the total purchase price, and those are wildly optimistic numbers. I suspect the same is true in most high-cost neighborhoods. Building bigger nicer houses does improve the ROI somewhat, but that's like an optimization after picking the right lots in the right neighborhoods.