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Biggest cost drivers for construction are land prices, permits and taxes, materials, and interests. You cannot make permits, taxes, and land prices to go down
by eb0la 3y ago
Biggest cost drivers for construction are land prices, permits and taxes,
materials, and interests.
You cannot make permits, taxes, and land prices to go down.
Interest can be "tamed" if you build quick and sell quick.
And most material prices are driven by transport.
Before you jump into the sector remember a great technology for construction was drywall (Pladur, Knauf, etc): it lowered time (and costs) to build inner walls.
Anything electronic, like automated window blinds... etc is not interesting for the sector: prices are high, cost to deploy are also high. It won't get mass adoption unless customers want to pay 2x-10x more for a house.
- onpointed 3y agoPermits and taxes can be addressed through politics and civic engagement.
- kaibee 3y agoThis isn't a business strategy because any reduction in taxes or ease in permitting also benefits your competition. Unless you mean that a company should lobby to increase difficulty/taxes so that they're the sole survivor.
- bombcar 3y agoThey're also extremely local, so it can be quite hard to scale. The standard SV "ignore the laws until too big to fail" Uber/Airbnb is just not going to fly. You've never seen enforcement until you've seen the building inspectors crawl up someone's back unpermitted retaining wall (going so far as to take the sheriffs to order a backhoe to knock things down).
- bonestamp2 3y ago> Biggest cost drivers for construction are land prices, permits and taxes, materials, and interests. Don't forget labor. Any tools that can significantly reduce labor will at least get someone to listen to the pitch.