5 ms·
That's definitely true in the short term. Now, imagine the secret of the $1 build is available to at least one other commercial builder. The "your margin is my
by starwatch 4y ago
That's definitely true in the short term.
Now, imagine the secret of the $1 build is available to at least one other commercial builder. The "your margin is my opportunity" aspect of a free market kicks in. There's a high demand for housing, so competing builders compete for the same buyers. Over time it'd drive down the price.
If this doesn't happen it's probably a combination of:
1. limited land available to build on
2. the money chasing uniqueness e.g. unique builds, pretty views, access to schools, etc.
3. price fixing
4. other..?
- ben_w 4y agoI'd suggest that #1 is already a strong part of house prices, at least in the UK (despite moving to Germany a few years ago, I've only looked at the end price here not the causes). If you can reduce the cost of making new infrastructure to a pittance, I'd expect house prices to fall even in the absence of any change to the manufacturing costs.