3 ms·
> Well, that's not true. In a place were land is plentiful and cheap, the price to get a house is dominated by the cost of building. Doesn't matter if there's a
by mrep 5y ago
> Well, that's not true. In a place were land is plentiful and cheap, the price to get a house is dominated by the cost of building. Doesn't matter if there's an existing house that someone is willing to pay 100 for it. If people can trivially buy land and build for 20, that would be the cost to own a house in the area (note: a house, not THAT particular house).
Definitely true, just look at home prices in the south and midwest where there is plenty of land [0].
[0]: https://www.supermoney.com/inflation-adjusted-home-prices/ https://www.supermoney.com/inflation-adjusted-home-prices/
- coldtea 5y ago>where there is plenty of land It's not about there being cheap land in the state in general, it's about being cheap land where people want to live. Or, inversely, sure, home prices in the south and midwest might be high in expensive areas (e.g. major city), but they're much lower where land is cheap.