posted on Jan, 20 2016 @ 02:25 PM
originally posted by: onequestion
a reply to: schuyler
Has the cost of building materials gone up?
My impression is that it's more in the line of "requirements" that have increased the cost of building. For example, in one house my neighbor built
down the road he told me the cost of excavating and filling this one hole with the proper kind of rock in the proper way (with no dirt contamination)
cost him $20,000. The hole was kind of like a pond retention system that took water from the rain that came off the house and stored it for later
release into the ground. He couldn't just dig a hole and fill it with gravel. It had to be this specially-certified rock. I took a look at it and it
looked like round rock to me. And the way it rained around here the last coupla months, that hole was filled with water after a few days. (REALLY
serious rain.) (Reason I know a little bit is because I always walk my dog and visit the construction sites and chat with the guys for a few minutes
Other newish requirements I can think of include septic and drain fields (MUCH more complicated than they used to be), electrical issues, etc. One I
came across myself was the new insulation requirements. They want the house so very tight to retain energy, THEN they require additional venting to
prevent toxic build-up of indoor pollution because the house is so tight. Then the government requires the builder to contribute to an "infrastructure
fund," and extra few thousand in up-front costs to the schools, a contribution to the fire district, and suddenly what would have been a reasonably
modest priced house (The one I'm talking about has a fairly small footprint) is suddenly prices out of range of the normal person.
Another issue is that in "boom" places like Seattle (Amazon, Microsoft) the rents are so high you can't afford to live there, so that pushes people to
the outlying areas (like where I live) and pushes up prices there.
Is it because there are way more houses available by the tens of millions then there are actually people buying houses?
In this case the credit crunch contributed because nobody could get a loan for a long time. People were otherwise qualified, but the banks weren't
lending. Plus there were a ton of defaults, so bank-owned housing was lowering prices, too.
Here in OC only 1 in 6 residents can afford to buy a house. In a supply and demand economy that would mean the cost of buying a house is
actually lower than renting.
I hear you. And places like California are so overbuilt anyway that they don't have enough water or electricity to serve all the stuff that is there.
So where are all these people coming from? I guess you could easily qualify to buy a house in Detroit, but who would want to live there? There aren't
any jobs and you can't walk the streets safely at night.