[quote=CA renter][quote=threadkiller]Seems to me that builders nowadays just want to build “move-up” housing. It seems impossible for first time buyers to buy a new, 3bed 2bath, modest detached home. I think if you take away excessive profit, union labor, governmental red tape, there should be no reason a new modest home couldn’t be in the 200’s. It’s too bad other states can do it but CA can’t or won’t.[/quote]
The govt fees and costs to build are far, far too high. Unions, for the most part, are no longer in construction. The culprits are govt fees, builder/developer profits, and **land prices.** As long as developers/builders are overpaying for land, end buyers will end up being overcharged.
Buyers are in charge of where prices go. If buyers refused to pay the high prices, land costs would come down enough that it might become feasible to build nice, modest homes for regular families. I’d like to see that, too. :)[/quote]
I don’t see land prices coming down in SD County. Firstly, we are running out of land (if we haven’t already run out). What is left are slivers of exurbs that will surely be encumbered by costly CFD’s, IF they are ever built on.
Secondly, am I missing something here? Why do first-time homebuyers expect to purchase BRAND-NEW construction? Where did this expectation come from? Even 1st time buyers in cheaper counties and states don’t expect to buy new construction. There is PLENTY of resale inventory in SD County on the market for a first-time buyer. A first time buyer with little down has to be able to ACCEPT what is in the resale inventory in their price range, rent or leave the county. It’s that simple.
