
New Starter Homes Hit a Dead Stop - jseliger
http://www.bloombergview.com/articles/2015-04-17/new-starter-homes-hit-a-dead-stop
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Someone1234
Developers must be working on razor thin margins if they're legitimately
arguing that material costs are a problem for them (material costs are around
$25-35K for a $200K home). Permits too are a drop in the bucket ($2.5K for
permits is considered high).

Most of the problems are going to be labour, land, and the cost of being up to
"code." I fully support building codes, they keep homes safe, and give people
the "basics" we have come to expect. But it is a legitimate cost in building a
home (i.e. a basic log cabin with wood fireplace is illegal in most cities).

$200K homes definitely still exist, but typical in areas where land is cheap,
which tells you where the lion's share of the problem really comes from (e.g.
you're not getting a 200K home on a 150K plot).

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koberstein
I bought my first home last year and I didn't even consider building. The
thought didn't even occur to me as an option. I think we are seeing a shift in
mindset here - I would guess that people in my position are just buying older
houses because they are cheaper than building and readily available ( at least
where I live ). I paid well under $200k.

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sjg007
Surprised we don't see more modular prefab homes.

