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> But it would be much more broadly effective to remove one digit from housing prices How would you in the real world reduce prices by one order of magnitude?
by jjav 2y ago
> But it would be much more broadly effective to remove one digit from housing prices
How would you in the real world reduce prices by one order of magnitude?
e.g. a $1M house would cost 100K tomorrow?
Building that house has more than 100K in just parts and labor. Even if the land were free, which it is not.
- worstspotgain 2y agoIt depends on how overpriced the local market is of course. The one-digit rule is not far from where SF and LA would fall, and works well for emphasis. New construction costs in much of the country are $100-200/sqft [1], but that partially reflects 5 decades of restrictionist overinflation. The price of land should be nominal in most places if you can go vertical without restriction, since the cost per sqft decreeases as the number of stories increases until you hit the dozens or thereabouts. Basically everywhere outside Manhattan and maybe a couple other zipcodes. [1] https://www.newhomesource.com/learn/cost-to-build-house-per-square-foot/ https://www.newhomesource.com/learn/cost-to-build-house-per-...
- jjav 2y ago> New construction costs in much of the country are $100-200/sqft [1] I don't believe that for a moment. If you do, why don't you try to get a 1000sqft home built for $100K? Cheap housing! If that was actually possible (in the US), why isn't everyone doing it? Why is everyone complaining about housing prices instead of just having their own custom homes built for a mere $100K?