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38 sats \ 1 reply \ @SimpleStacker 27 Dec \ parent \ on: The Cost Of NEW Home Lower Than Existing Home alter_native
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.
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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