1) developers can make what’s called “development margin” on the improvement of the site (fixing a house, building a multi family on top of a vacant lot, etc.).

1) developers can make what’s called “development margin” on the improvement of the site (fixing a house, building a multi family on top of a vacant lot, etc.). The margin is the (sale price - acquisition cost - building cost - planning cost) / (total cost). This is separate from the YoY post property tax equity appreciation of a housing unit by simply buying and holding.