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Construction is cheap, most “property” value comes from land — not the building itself. Hence you’ll find sprawling mega-mansions that are under a million dolla
by phphphphp 4y ago
Construction is cheap, most “property” value comes from land — not the building itself. Hence you’ll find sprawling mega-mansions that are under a million dollars in the middle of nowhere, whereas a few hundred square feet can cost millions in New York.
Denser areas are more expensive because that’s where people want to live, and land is at a premium.
- endisneigh 4y agoConstruction is not cheap. If what you were saying were true renovations would be cheap, which they are not. And the land becoming more expensive is the point. If an area becomes more popular then it will be denser meaning the land is more expensive meaning the housing is more expensive. Building denser does not necessarily result in cheaper housing in the net.
- notch656a 4y agoIDK, where I live land is cheap (think $10k) but even the shittiest land with a house on it is expensive (you would easily pay $250k+ for a house that would cost $125k in labor and materials build). Zoning and Building codes mean houses are artificially constrained in a way land is not. There's an insane premium on zoning and permitting the land to build, as well as having the irreplaceable liberty to be covered by a grandfathered structure that is no longer legally buildable.