Quote:
Originally Posted by oldE
.....live in a house which is larger than they need.....
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Yeah, this is sort of my point. Consumer might prefer the 1500 SF home for $400K. However, for just a few dollars more in construction expense, the home becomes 3500 SF and $600K. Developer makes more money building them bigger because the extra cost of that last 1000 SF improves selling price bigly. Invest another $50K, and get an additional $200K return. Return is far greater than marginal cost. No brainer.