Quote:
Originally Posted by zzptichka
Is that so? Rents nowadays are are largely driven by supply/demand, not by the construction costs.
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That's true - I'm just going by what has been required in the past to make non-profit projects viable. Construction costs are particularly high now, so I've got to think that the break-even rent numbers are worse, if anything. Maybe as interest rates come down, that will change.
However, if you are just looking at what are often quite variable construction costs to set rents, you don't get a lot of certainty that you will actually end up with affordable rents. You'd probably need government to assume some of the risk of overruns to make it all work.