3 ms·
Wrong premise, wrong conclusion. Land costs are the majority, not construction costs.
by flerchin 6y ago
Wrong premise, wrong conclusion. Land costs are the majority, not construction costs.
- bumby 6y agoI know HN skews toward California but surely this doesn’t generalize across all geographic areas
- notacoward 6y agoNot all, perhaps, but more than you might think. If you want to see for yourself, go on Zillow and check out prices for empty lots vs. nearby lots with houses on them in different areas. When I just did that, the price ratio seemed remarkably stable anywhere near even low-demand cities. You have to get pretty far out in the sticks before it falls apart, and almost by definition that's a low percentage of homes.
- bumby 6y agoSo I’ve been doing a lot of this recently because I was applying for jobs across different areas of the country. It seemed to me that as long as you stay away from the coasts or major cities, land can be had for 20%-30% of the built value. Just anecdotal of course