4 ms·
Maybe they still cost $400K, because the purchase of the land, the labor and the materials and the interest to finance the project eat up most of that $400K, no
by ejb999 3y ago
Maybe they still cost $400K, because the purchase of the land, the labor and the materials and the interest to finance the project eat up most of that $400K, not to mention some places charge you building permits that cost ten's of thousands of dollars - if not more.
Nobody is going to build houses and sell them at a loss or at break-even price, they need to cover their costs and make some profit as well to keep the business alive.
- SheepSlapper 3y agoComing from a construction background, I can confirm all of this. Permits are out of control, material prices are nuts (not COVID nuts, but still at least 300% higher than the good old days), and subcontractors are both hard to find and more expensive. It's not crazy to build a decent 3-4 bedroom house and have it cost $400k all said and done, even in my small-big-ish town. A lot of people in here arguing, bet there are very few of us that have actually built houses before :)
- travisb 3y agoI was speaking to my house builder in the middle of 2023 and he noted that it had become impossible to build a starter house (2/3 bedrooms, 1.5-2 bath) for less than $450k CAD (~$300k USD) -- excluding land, utility connection, and financing costs. He also mentioned that new requirements going into effect this year were going to add $10-15k per house. People tend to have a poor grasp on what building a new house actually costs. They cost a lot to build with no gouging whatsoever.