Re: Home Prices Vs. Wages

Ron Peterson wrote:
On Jun 29, 7:08 am, Gary <n...@xxxxxxxx> wrote:

But why do houses in areas where land is not so high, also go up in
price ? I live in an urban-suburban area surrounded by thousands of
acres of farmland. If some developer wants to build -- he buys a 500
farm and builds 500 to 1,000 houses. And he tries to charge like he
was in Manhattan. .

Builders and farmers want to keep lot size small so zoning will keep
lots expensive even where land costs are low.

There isn't much savings on new buildings because material and labor
aren't significantly lower.

High rise buildings aren't much more expensive than shorter buildings.

--
Ron


Subdividing property into small lots is simply a strategy to maximize the profit on the land.

While not high rise, two and three story buildings are less expensive to build than single story houses for the same floor area.
.