kotika98

Housing's Big Picture Isn't Pretty

what a bunch of bull! In America land is still unlimited, and home prices are a function of building cost only. You dont need to go back 50 or 100 years to try to guess what those costs are. Look at the annual report of DRHorton or Toll and you can find out precisely how much it costs to build every kind of house (depends on location a bit). Bare land values are 30-50K per lot and than cannot go neiter much lower not much higher. Bottom line - and those figures you cite confirm it, house prices go at the rate of inflation in the long run. Only in locations where land is no longer available without limit can prices become detached from building cost, and truly there is only Manhattan in the entire USA where there is not going to be an inch more of land to build.