Housing construction costs are a nonsensical number to look at. If I’m going to build and sell a 2 million dollar property, I’m not going to spend 100k buildin

Housing construction costs are a nonsensical number to look at. If I’m going to build and sell a 2 million dollar property, I’m not going to spend 100k building a tiny home. Developers need to compete at this price point, the cost of construction is probably a loosely linear function of land value. Land value has been inflated by a puzzling combination of NIMBYs, interest rates, and economic growth.