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> AI will lower the cost of goods and services, because labor is the driving cost at many levels of the supply chain. If robots can build a house on land you al
by thatfrenchguy 6y ago
> AI will lower the cost of goods and services, because labor is the driving cost at many levels of the supply chain. If robots can build a house on land you already own from natural resources mined and refined onsite, using solar power, the cost of building that house is close to the cost to rent the robots. And if those robots are made by other robots, the cost to rent them will be much less than it was when humans made them.
The issue with rising costs of housing is not (completely) linked to labor costs, it's land value, regulatory capture, bad infrastructure, and heavily marketed house-in-the-suburbs-as-the-only-way-to-live.
- aqme28 6y agoConstruction is a very small part of housing costs. Outside of rural areas, much of the cost is speculative or supply/demand.
- imtringued 6y agoConstruction is a big part in some locations but it doesn't make housing unaffordable, merely expensive. From memory: Tearing a $2 million single family house and putting 6 apartments there would allow you to charge $3k rent. Build taller and rent drops even lower. This is assuming construction costs of $500 per sqft.
- A12-B 6y agoRising costs of housing is, almost entirely, due to the fact that individuals are allowed to own more houses than they can use, while most people don't own any. It seems fairly obvious that if you control the housing market, a human need, you can set prices as high as they will possibly pay them.