Quote:
Originally Posted by Gantz
If more development is allowed, the choice would not be between renting a room in an apartment or a room in a SFH. The actual construction cost, even with California regulations and taxes, is probably around $1,500 per month for a 1br, the rest ~50% of rent cost is just NIMBY premium due to restrictive zoning.
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Why guess? The average construction cost in the Bay area is now $417/sq ft. Most new 1 bedrooms run around 650 sq ft so around $270,000 to build. The cost of land, which I don't believe is included in that figure, could easily double it. In San Francisco, using land it already owns, it costs the city about $450,000 per unit to build "affordable family housing" which is subsidized for the occupants.
I'm not expert calculating how much rent should be charged on a unit costing around $500,000 to build (not counting fees and regulatory costs which, you are right, can be quite high) but I'm pretty sure it's more than $1500/month.