I’d argue most of the cost of scare housing is supply limits imposed by ridiculous over regulation of new construction. It’s not like we forgot how to build houses and apartments we just aren’t allowed to.
Even if you could build as you please, the labour costs still make up the large marjory of the cost of the home. There isn't a whole lot of room for the costs to come down.
That is unless you destroy the price of labour... Which undoing the global economy will help with.
When I bought my land the #1 driver of cost was either covenants (basically irreversible burden written by now dead boomers in the 80s who were furious someone would build anything but a mansion next to their mobile home pig farm) or zoning. I knew I needed to build as small as possible to keep prices down, so I had to find a needle in a haystack of someplace without onerous covenants or zoning but with some way to establish or create utilities. Everyone was wanting 1000+ sq ft houses on their vacant desert shithole land.
Just water and electric can be a nightmare. I lucked out buying an unproven already drilled old well that was grandfathered in, but if not you have to deal with hoping you'll be allowed to drill or access water and costly regulation for that. Same story with electric. I finally got it, after paying the coop to run new poles down the road, but only after a long fight with another company that kept asking for endless paperwork and expensive surveys that they later admitted weren't even needed. And then there is septic. I found a guy who used to be the county inspector to navigate that for me, but without connections you can get yanked around into all sorts of expensive hurdles or overengineering.
This is 1000% true. Owner builder DIY building is basically unregulated where I live. I built a 600 sq ft house for like $40,000 last year. I have a plan that works, but either no one believes me or they spend all their time looking for ways that it fails rather than how they can succeed.
Nah, 2d space is finite. If you flood an “island” (desirable location) with demand then prices can only go up. We are building skyscrapers in manhattan for over a century so what? Rent is still $5k and $1000 per sq ft to buy.
It doesn't matter if you build skyscrapers for over a century if you don't build enough of them. The only places in the country where rent is actually going down is where housing is actually being built in any significant numbers. Austin builds more homes in a week than San Fransisco does in an entire year.
Rent is 5k because the supply isn't meeting the amount of demand.
9rx|11 months ago
That is unless you destroy the price of labour... Which undoing the global economy will help with.
ty6853|11 months ago
Just water and electric can be a nightmare. I lucked out buying an unproven already drilled old well that was grandfathered in, but if not you have to deal with hoping you'll be allowed to drill or access water and costly regulation for that. Same story with electric. I finally got it, after paying the coop to run new poles down the road, but only after a long fight with another company that kept asking for endless paperwork and expensive surveys that they later admitted weren't even needed. And then there is septic. I found a guy who used to be the county inspector to navigate that for me, but without connections you can get yanked around into all sorts of expensive hurdles or overengineering.
And this is all before you even break ground.
ty6853|11 months ago
whatever1|11 months ago
daemoens|11 months ago
Rent is 5k because the supply isn't meeting the amount of demand.