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The cost of building a house can continue to go down, but without land costs changing it doesn't really matter. My new house in central Austin probably cost $1
by leetharris 3y ago
The cost of building a house can continue to go down, but without land costs changing it doesn't really matter.
My new house in central Austin probably cost $100k in labor + materials to build, but the land is worth $500k+.
So you can come up with $50k houses all day long, but developed land in desirable areas continues to go up due to over-regulation, NIMBY, zoning, etc.
- s0rce 3y agoCosts seem to keep going up in California with endless red tape and permitting and labor costs.
- uoaei 3y agoThose are symptoms, not causes. A lot of the value of land in California is proximity to good services and high ROI as regards social and career. The red tape, permitting, and labor costs are market-derived cash extraction mechanisms. Your problem is rent-seekers, not government.
- gottorf 3y ago> The red tape, permitting, and labor costs are market-derived cash extraction mechanisms. Your problem is rent-seekers, not government. Red tape and permitting is government, though. Rent-seekers in government, maybe, but government nonetheless.
- pasabagi 3y agoRent is income that the government enforces your right to collect. A distinction between 'rent-seeking' and government is meaningless.
- deleted 3y ago[deleted]
- uoaei 3y agoYou could say the same of any economic relationship mediated by money...
- poulsbohemian 3y ago>My new house in central Austin probably cost $100k in labor + materials to build I would be very curious to know more about this, as in my area, you can barely build a large barn for that.
- leetharris 3y agoI have a small house. When I bought it, the appraisal + insurance valued the actual "house" around $120k or so, everything else was just land.