3 ms·
> Because that's where the land that doesn't already have a high-rise on it is. True, but the people who want to live in a highrise also want to live in a city
by jjav 3y ago
> Because that's where the land that doesn't already have a high-rise on it is.
True, but the people who want to live in a highrise also want to live in a city, not out in the suburbs.
Who are you (as the builder) selling these units to? Can you do so profitably if there's not that much demand for highrise living in the suburbs?
- AnthonyMouse 3y agoSuppose the price of a house in the suburbs is $400,000. Developer buys one, pays $5M more to build a building with 20 condos in it, sells them each for $350,000 and nets $1.6M. Why would somebody buy one of those instead of a house? Because they're $350,000 instead of $400,000.
- jjav 3y ago> Why would somebody buy one of those instead of a house? Because they're $350,000 instead of $400,000. That's one reason, but another common reason is that they just want to live there and there isn't a house available on the market so they take what they can get even if that is the apartment for 400K.
- AnthonyMouse 3y agoThis was your question: > Who are you (as the builder) selling these units to? Can you do so profitably if there's not that much demand for highrise living in the suburbs? It seems like you've answered it yourself? You're essentially asking who you're going to sell new housing to in a housing shortage.