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> It's more expensive to build tall buildings (per sq foot of habitable space) than single family homes or townhomes. This isn't really an issue when building
by lazyjones 8y ago
> It's more expensive to build tall buildings (per sq foot of habitable space) than single family homes or townhomes.
This isn't really an issue when building costs are far below market prices for either of these. Obviously, supply would drive prices down despite higher building costs.
- usaar333 8y agoWell, absent zoning laws, you'd build tall buildings. And you'd build more floors until the marginal cost of adding the Nth floor is just under the marginal selling price of the floor. (so it always will be an issue)
- lazyjones 8y ago> And you'd build more floors until the marginal cost of adding the Nth floor is just under the marginal selling price of the floor. No, you'd stop much earlier or it wouldn't be worth it. > (so it always will be an issue) Sorry, I can't follow you there. What would be the issue? Even the marginal cost of building the Nth floor at which you'd stop would be much lower than current market prices for a similar amount of residential space. So building enough of it would drive prices down.