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Real Estate
Reply to "WSJ: rapidly growing mismatch between the price of available housing inventory and demand"
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[quote=singledadmclean]One reason developers build six bedroom houses is that the marginal cost of a 6 bedroom house, as opposed to 4 bedroom house, is small. There isn't much to those huge houses--just wood and re-manufactured wood. The real cost of the tear-down and McMansion buildup is the land, followed by the permits. Given the scarcity of land, and the big fixed cost of permits, you might as well build as big as possible. Many of those large houses have apartments in the basement, or in-laws living in the house so there are more than 2 adults in the average McMansion. [/quote]
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