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They vote for higher real-estate prices but that doesn't in general require multifamily housing, scarcity works just as well.
by khuey 6y ago
They vote for higher real-estate prices but that doesn't in general require multifamily housing, scarcity works just as well.
- choeger 6y agoWell, say you have 1000m^2 to sell. In Germany, in a relatively dense area, you can build two one-family homes on that real estate. Considering the financing requirements and the relatively small size of the plots you can sell the real estate for maybe 600k in total, assuming that a family can pay 600k for a house and real estate and 50% goes into the latter. (This is a rough estimate for generic metropolitan areas, might be much lower in areas where there is place to build, might also be much higher in some areas.) If you do a multi-family home, you can easily build up to 8 town houses or largish apartments on that same area. Say you sell each of these for 500k, leaving the family a good argument to move into this more dense configuration. Even if the construction costs stay the same (they won't), that would leave you with 1.6M for the whole real estate.