3 ms·
One piece missing in this analysis is construction cost: between permitting, regulations, unions, and Other Unknown Factors™, it can cost 2x as much to build th
by zamfi 7y ago
One piece missing in this analysis is construction cost: between permitting, regulations, unions, and Other Unknown Factors™, it can cost 2x as much to build the same structure in the USA compared with elsewhere.
If construction is cheap, sure, tear down the old and build anew. But if it costs more to build a house than buy the same house (yay SF Bay Area!) you’d be crazy to do this now.
- throw0101a 7y agoThis is hyper-locale specific, but the median per square foot construction cost in the US is under $150: * https://www.newhomesource.com/guide/articles/cost-to-build-house-per-square-foot https://www.newhomesource.com/guide/articles/cost-to-build-h... Though a more realistic number, if one wants something a bit "nicer" may be up to $250: * https://www.thumbtack.com/p/home-building-cost-by-sqft https://www.thumbtack.com/p/home-building-cost-by-sqft In more (high-demand) urban areas, the price of the dirt may dwarf the price of the structure. When people say they "bought a home for $x", what's really happening is that they bought the land for $y and the structure for $z. If you look at homeowner's insurance, the coverage for rebuilding is $z and not $x.