While we have seen this occur in small flashes before and given dramatic situations currently that isn't the case which makes this all the more an issue.
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16 sats \ 8 replies \ @Undisciplined 27 Dec
It doesn't necessarily mean much. New homes tend to be further from amenities and iirc they're a little smaller.
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21 sats \ 7 replies \ @Cje95 OP 27 Dec
Historically though new homes have been more expensive in the US. When that hadn't been the case its been unique and it event driven but that's not the case at this point
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0 sats \ 6 replies \ @Undisciplined 27 Dec
It is interesting. I'm just saying that it doesn't necessarily mean in anything in particular.
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32 sats \ 5 replies \ @Cje95 OP 27 Dec
I mean maybe but its a clear red flag. Also its an issue with home builders as well because why build? You won't get as much as just buying up old stock and reselling it
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38 sats \ 1 reply \ @SimpleStacker 27 Dec
Buying up old stock and re-selling it could be more expensive than building a new house.
The general prediction from urban economics is that the price of housing on the city periphery where it's easy to build should be tied to the cost of construction.
The price in the city center, where it's hard to build and there are higher amenities (including, simply, lower commuting costs), is then determined by the relative amenity differential between the periphery and the center.
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33 sats \ 0 replies \ @Cje95 OP 27 Dec
Using DC as an example here it is actually much cheaper. The cost of construction is one thing but the other issue is the permits and the cost of hiring everyone you need for them. In DC that can easily run in the 10s of thousands and that is without having to change anything. DC new builds should be less expensive since you take care of this day one but that just isn't the case.
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0 sats \ 2 replies \ @Undisciplined 27 Dec
That's why I mentioned the differences in the products. I don't know that it's apples to apples.
For homes of the same size, in the same areas, are new homes cheaper? I doubt it.
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39 sats \ 1 reply \ @Cje95 OP 27 Dec
In the area where my parents live in HTX and in DC, new homes are dramatically more expensive even with fewer amenities, less of a yard, and general construction in the area. Where my parents live the new construction will put the same size how or there about with less of a yard (plot size is smaller but also narrower) it turns out as well people like the big oak and pecan trees and those alone add roughly $60k to the price of the house.
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0 sats \ 0 replies \ @Undisciplined 27 Dec
That's been my experience, as well. If you want to buy into an established neighborhood, it can be more expensive.
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0 sats \ 1 reply \ @grayruby 27 Dec
Chart is very hard to read.
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40 sats \ 0 replies \ @Cje95 OP 27 Dec
Chart isnt the best but its the best picture I could get. Since 2000 only in mid 2021 did the market shift like this and that was during COVID and the lack of new buildings ready to go
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