[YATA0]

This Twitter thread hits the nail on the head. Imagine this process in California, where just working with PG&E to get utilities to the site may be a six figure adventure, then another $40-60k for an electrician to wire the house. That could be close to $200k for electrical alone. This could be for a 1,000 square foot shed in Oakland, not somewhere around Malibu.

Add on the planning costs that the Twitter author goes on about, and your "affordable housing" is now near a million dollars. Is that really affordable?

[vbezhenar]

I can build the entire house with everything included. And not from those pesky woodsticks, but from a real concrete and bricks. For around $40k. Something in US is seriously wrong. I understand that labour cost difference is huge, but it can’t be the only factor.

[quinncom]

I was just thinking the same thing. I was involved with a development project in Colombia, a three-story tract of 3b/2b apartments. The total construction cost was about $40k each. Permits and fees was maybe $1000 plus a year of waiting and a few bottles of gift-wrapped tequila. Selling prices were $50–70k, some rented at $250/month.

Why is it absurdly expensive to build in the USA?

[cplusplusfellow]

Can you elaborate what kind of house this is for 40k?

What is your location?

[CalRobert]

What's wrong with wood homes? I associate concrete with getting killed in Earthquakes and shantytowns to be honest.

[newsclues]

Building code regulations are expensive.

[deepakhj]

Affordable units in SF cost $700-800k.

[YATA0]

Where do you live? $40k in concrete will get you your concrete driveway in California.

[virtualwhys]

> $40-60k for an electrician to wire the house.

Think I'm in the wrong profession, what on earth does a Californian electrician make per year? At that rate I'd guess 500K+

[giantg2]

Many of the trades can make good money. Especially in areas that forbid owners to work on their own homes, even to replace an existing water heater (like NYC).

[sgc]

Around here they make about $150 an hour if they are contractors and work for themselves. So I would guess 80-100 for an electrician with 5+ years experience. About the same as most other semi-specialized trades.

[spaetzleesser]

Not the electrician. The company owner.

[hedora]

It takes an absurd number of hours to wire a house in California because the code is insane. That multiplies with high labor costs.

Wiring a simple / small home, it takes well over four electrician months, minimum.

Also, they have to pay licensing fees to the state, insurance premiums, etc, etc.

Of course, the $40-60K also includes materials, which are a small percentage of the cost, but non-zero.

[cagenut]

for single family detached, no

but that was never actually an economically viable product, so it makes sense to simply not expect it to work.

for four to sixteen units that seems like it could be fine?

[sethammons]

> but that was never actually an economically viable product

There are clearly lots of these buildings. And have been for decades. It may not work "forever" but it has worked.

Your argument reminds me of the economist who steps over the $100 bill on the ground since it couldn't possibly be there because if it was, someone would have picked it up by now.

[YATA0]

>but that was never actually an economically viable product

It is the most economically viable product, which is why they dominate.

>for four to sixteen units that seems like it could be fine?

Those costs have also skyrocketed because now you have additional requirements like fire, egress, additional structural when going over two stories, etc.

It's why most new apartments are "luxury" apartments. The costs have grown so out of control that the only way to break even is to make them outrageously priced.