Quote:
Originally Posted by i-215
I guess the ultimate question, putting land aside..... what's the per unit cost of construction for a ....
1) 3 bed, 2 bath freestanding house.
versus
2) 3 bed, 2 bath townhome
3) 3 bed, 2 bath multi-floor condo
4) 3 bed, 2 bath in a highrise.
Add that to the cost of land, it may explain why downtown will always be more expensive. Certainly having a greater supply will help, but I think dense construction simply costs more, and the land makes it become unaffordable.
Does anybody have any construction connections, who could answer my question?
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Setting aside the zoning and the use of other properties in the area, it's the cost of land that determines everything. You wouldn't buy a lot in Manhattan for several million dollars per acre and then put a one-story ranch-style home on it. It wouldn't be economically feasible. Similarly, you wouldn't buy a residential home lot in a suburban subdivision and put up a commercial high rise.
You incur building costs in accordance with the value of the land on which you are building. Therefore, if it's economically feasible to build a high-rise, it means that the land was very expensive and in order to recoup enough of the land costs from each residential unit, you have to build far more square feet of space than is available on the site (you must go up). If you can make money on the project by only building one or two floors, it means the land wasn't that expensive (relatively).
So to answer your question (sort of), your four styles of residential are listed in order from least expensive to most expensive, but not necessarily because of actual building costs, but because of what type of parcel you would build each of them on.
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