5 ms·
Yes. Housing is a human need just like breathing air or eating food so if you can create artificial scarcity there you create value out of nothing. The average
by resuresu 4y ago
Yes. Housing is a human need just like breathing air or eating food so if you can create artificial scarcity there you create value out of nothing. The average home cost around $50k in materials to construct, but after it’s assembled it magically worth 250k? Lol the math doesn’t make sense.
- s1artibartfast 4y agoTry to build your house for 50K and you will see where the extra cost come from. Land and labor
- olyjohn 4y agoYou can barely get a framed in tiny home (no sheetrock, insulation, electrical, plumbing) for that price. And that doesn't even include land.
- jaywalk 4y agoLand and labor are not free.
- resuresu 4y agoLand is actually valuable because its scarce. And as for building costs I highly doubt it cost 100k for the labor.
- jmoak3 4y agoThese days even pouring a driveway can cost in the tens of thousands of dollars. Constructing a house is rather expensive, here’s just a random link from google: https://www.ramseysolutions.com/real-estate/how-much-does-it-cost-to-build-a-house https://www.ramseysolutions.com/real-estate/how-much-does-it... Another random link claims 30-50% of the cost is labor: https://www.bankrate.com/real-estate/cost-to-build-house/ https://www.bankrate.com/real-estate/cost-to-build-house/
- osigurdson 4y agoThe land has some value. Also, home construction seems very inefficient - every home is a snowflake even if identical to the one next door. Drywall finishing as an example is very time consuming and hard to do correctly . You need a lot of experience to be good at it (if you don’t believe me, just try it and weep at your results). Then, once this is done even painting is an entirely manual process costing $4K+.
- deleted 4y ago[deleted]