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This is anecdotal, and the market deserves to be addressed holistically. In major metros, city councils refusing to permit new construction limits supply artifi
by arcticbull 5y ago
This is anecdotal, and the market deserves to be addressed holistically. In major metros, city councils refusing to permit new construction limits supply artificially and pushes up prices. It may well have fallen outside major metros where cost of construction is a bigger portion of the price of a house. However, consider that zoning rules conspire to make houses outside metros bigger even if cheaper per square foot.
[edit] btw, percent over ask doesn't mean too much by itself - after all the market in the region may default to setting asks below expected price. That's just how it's done in some places. [1]
[1] https://www.homelight.com/blog/price-my-home/ https://www.homelight.com/blog/price-my-home/
- seanmcdirmid 5y agoIf you look at markets with lots of new construction, you'll find that prices are increasing more rapidly (not surprising, since new construction is driven by rising housing prices). Right now there are challenges in procuring labor to build new housing as well as procuring material, but permitting isn't really a bottleneck (at least in my rapidly growing region in Seattle, you only need to go on a walk to see all the new townhomes being built).
- PaulDavisThe1st 5y agoI do't think its useful to "address the market holistically". The housing market is heavily variegated, and any honest assessment must take this into account. It's not one market, it's many different markets, and possibly sorting them even into just a binary classification makes more sense that treating it as if it's all the same.
- deleted 5y ago[deleted]