In urban areas, the limiting factor in urban housing supply isn't the cost of construction, it's the finite quantity of land with a valid state-granted construction permit. We could innovate until the cost of construction approached $0, but if there's fewer homes supplied than there are people demanding them, the prices will rise.
This is why in Brooklyn, an entire townhouse can cost $2.7m, while the neighbouring plot of empty land costs $2.4m, then a short walk away an un-permited empty plot is $700k. The item of value in the housing market market is weirdly mostly not houses.
This is why in Brooklyn, an entire townhouse can cost $2.7m, while the neighbouring plot of empty land costs $2.4m, then a short walk away an un-permited empty plot is $700k. The item of value in the housing market market is weirdly mostly not houses.