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Land values play a major factor in home values, but there are other factors that could lead to the increased cost of building homes, such as the price of raw ma
by linguae 3y ago
Land values play a major factor in home values, but there are other factors that could lead to the increased cost of building homes, such as the price of raw materials and the price of labor. Higher interest rates are also having an impact, since it costs more to borrow money.
- jeffbee 3y agoThere are of course many factors, but the largest driver of cost increases in recent years have been materials and contractor profits. There aren't enough contractors and they can name their price. Unfortunately labor isn't really part of the cost driver, and basic laborers like carpenters are still under-paid compared to the wages that would attract people to the trade. Basically the American economy is now rigged to direct all earnings to middlemen and "thought workers" so nobody wants to just swing a hammer.
- silverquiet 3y agoI often think about it like this - what job would you prefer for your child - work on building a road, or be a lawyer arguing whether or not that road should get built?