4 ms·
> Builders are walking. Why? Builders are supposed to be doing the paid work, why would they walk out of it?
by avmich 1y ago
> Builders are walking.
Why? Builders are supposed to be doing the paid work, why would they walk out of it?
- AnimalMuppet 1y agoIf you buy a plot of land, go to a builder and ask them to build a house on it, sure, they'll do it. That's not what most builders do most of the time, though. Most of the time, most builders buy a piece of land, build a house on it, and then find a buyer (or at least while they're in the process of building the house). If they're having trouble selling houses, then they're left with a bunch of houses on their hands, on which they're having to pay the interest. They don't want to be in that position.
- avmich 1y ago> They don't want to be in that position. Then where are the builders which do what they're asked to? Is the problem with the banks which don't do this operation? Then it looks like a financial opportunity. You're effectively saying "this business model doesn't work". This doesn't mean there are no other business models which work in this case. Where they are?
- AnimalMuppet 1y ago> Then where are the builders which do what they're asked to? These are independent companies. Who do you think is supposed to be asking them to do something? When a customer asks, they do it. What more do you want? > This doesn't mean there are no other business models which work in this case. Where they are? They made less money than this model over the last decade or two. So they are nonexistent, not in the sense that they are impossible, but in the sense that nobody uses them. Could companies start using them? Sure. But probably, first some homebuilders who use the current model have to go bankrupt. (A side benefit is that some already-built homes would go on the market at bankruptcy sale prices.)
- avmich 1y ago> But probably, first some homebuilders who use the current model have to go bankrupt. I think it's not necessary. The different model homebuilders should pick up the orders, that's it.
- AnimalMuppet 1y agoThey don't exist - today, at least not in any quantity. There are very few "different model" homebuilders waiting around to pick up the orders. It's not like you think it should be, and the path from here to there is less smooth than you seem to think it is.
- avmich 1y agoPeople built houses for millenia. In America the small scale builders were here pretty recently - even now, I suspect, you can find them all across the country. I would be surprised if people completely forgot how to build houses all by themselves.