Comment 68283

By Undustrial (registered) - website | Posted August 19, 2011 at 11:53:22 in reply to Comment 68274

Over the last forty years, housing prices have seen an impressive rise, here and abroad. "Non-structure costs" have gone from under 10% in many places to over 40%. What really hasn't risen much (and has fallen in some places) is the actual cost of building them.

Have consumers been purchasing lower-quality buildings? Yes, but there's a lot more to the story. With four decades of stagnating wages fighting to afford rising home prices, people couldn't buy a stone and hardwood castle even if they wanted to. It's pretty obvious that many people would choose if that were a serious option - look at how many, rich and poor, still choose to live in the lower city's century homes.

What would it take to get "better buildings"? A larger share of the price devoted to construction (higher quality materials, etc) and wages. Those wages mean we can hire artisans and tradespeople capable of shaping stone and other such tasks, and it means more money in the pockets of people to spend on the homes.

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