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This even extends to stuff added to builds that are mandated by law and have little reasonable justification. For example, a city might demand all new apartment
by asdff 4y ago
This even extends to stuff added to builds that are mandated by law and have little reasonable justification. For example, a city might demand all new apartment units need to have a balcony, and all new apartment buildings might need to have some open courtyard space. Now you've increased the cost per unit by a huge amount by mandating these balconies and also the unrentable voidspace.
- RC_ITR 4y agoAnd this is part due to the fact that real estate has to (at least in part) be valued on hypothetical replacement cost. Can’t have apartment buildings reading hands for $100mn when a new one costs $20mn (or have the land sell for $80mn when you only allow 2 stories to be built on it).