Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by resuresu on Tuesday March 21, 2023 @10:31AM
(#35246732)
Yes. Housing is a human need just like breathing air or eating food so if you can create artificial scarcity there you create value out of nothing. The average home cost around $50k in materials to construct, but after it’s assembled it magically worth 250k? Lol the math doesn’t make sense.
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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by s1artibartfast on Tuesday March 21, 2023 @10:41AM
(#35246871)
Try to build your house for 50K and you will see where the extra cost come from. Land and labor
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by olyjohn on Tuesday March 21, 2023 @01:34PM
(#35249551)
* * *
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by jaywalk on Tuesday March 21, 2023 @10:41AM
(#35246877)
Land and labor are not free.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by resuresu on Tuesday March 21, 2023 @11:24AM
(#35247550)
Land is actually valuable because its scarce. And as for building costs I highly doubt it cost 100k for the labor.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by jmoak3 on Tuesday March 21, 2023 @12:19PM
(#35248368)
These days even pouring a driveway can cost in the tens of thousands of dollars.
Constructing a house is rather expensive, here’s just a random link from google:
https://www.ramseysolutions.com/real-estate/how-much-does-it...
Another random link claims 30-50% of the cost is labor:
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by osigurdson on Tuesday March 21, 2023 @10:46AM
(#35246942)
The land has some value. Also, home construction seems very inefficient - every home is a snowflake even if identical to the one next door. Drywall finishing as an example is very time consuming and hard to do correctly . You need a lot of experience to be good at it (if you don’t believe me, just try it and weep at your results). Then, once this is done even painting is an entirely manual process costing $4K+.