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The same house costs $500,000 more to build in California than Texas

By RecentCost following x   2018 May 9, 11:16am 621 views   4 comments   watch   sfw   quote     share    


https://finance.yahoo.com/news/house-costs-500000-build-sell-california-texas-174156455.html

“In Texas, they have one new home community under construction today for every 10,000 people. In Florida, they build one new home community for every 20,000 people. In California, the ratio is one community per 45,000 people. The result is that [home builders] who build and sell substantially the same house in Texas for $300,000 as they build in California for $800,000,” writes Pete Reeb, a principal at John Burns Real Estate Consulting, in a new analysis.

California is a unique — and difficult — market for three primary reasons, according to Reeb. It can take 10 years or more to get a master-planned community approved for development, according to John Burns Northern California expert Dean Wehrli.

“And it’s a BIG IF that you will even get approvals, while subdivisions that already have substantial conformance with local zoning laws can take three to five very expensive years,” adds Reeb.

Additionally, California’s development fees are exorbitant. Homebuilders have to pay $25,000 to $75,000 in fees for a single home to be built in some areas of the state. Of course, that expense pushes prices higher for homebuyers.
1   justme   ignore (0)   2018 May 9, 11:35am   ↑ like (0)   ↓ dislike (0)   quote   flag        

MISLEADING, heck it is FAKE NEWS.

Most of the cost differential is the land cost, not the build cost.

>> Homebuilders have to pay $25,000 to $75,000 in fees for a single home to be built in some areas of the state.

That's not much on a 800k house, but developers like to bitch about the piddly stuff rather than the elephant in the room. I guess they don't want to piss off the landowners that may sell them the next parcel. So they do what Americans do, blame it on the government.
2   justme   ignore (0)   2018 May 9, 11:38am   ↑ like (0)   ↓ dislike (0)   quote   flag        

From the comment section of the article:
james
last month
This whole article is b's. The houses cost 500k more because the land costs 400 to 500k more.
3   Sunnyvale94087   ignore (0)   2018 May 9, 6:56pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Who eats the cost when city governments demand a certain percentage of "low income" units be built? I'm assuming that just jacks up the price demanded on the other units as a cost of doing business.
4   TrumpingTits   ignore (0)   2018 May 9, 7:40pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

pwagner says
I'm assuming that just jacks up the price demanded on the other units as a cost of doing business.


No need to assume. It's proven fact.




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