Quote:
Originally Posted by Coldrsx
i just dont understand the mediocrity of the pool of developers here... even the ones that have been around for a long time.
price and unit size have an inverse relationship for most product
yet it seems few recognize that or think our market would accept it
instead we build all 700-1400sqft units
only now are we seeing some decent new 500-600sqft places
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price and unit size do not have direct inverse relationship...
if you have an 800 sf unit and 600 sf unit all of your plumbing and servicing and fixtures and "per unit" item costs are pretty much the same. so lets say one of those items (plumbing rough-in for example) cost you 1,000. for the 800 sf unit, that's 1.25 psf. for the 600 sf unit it's 1.67 psf (i.e. a third more). do this for everything from that plumbing roughin to the patio door to the suite entry to the heat pump and electrical panel...
and where are you going to make the unit smaller? if it's in width, you will have more units per floor but each one still needs a kitchen, bathroom, washer and dryer, living area and bedroom etc. so the layouts will have to include more interior space - and less exterior space - which still costs the same to provide on an overall but is "worth" less within the unit). alternatively, you could provide the same width and less depth which means a greater percentage of exterior skin per sf in those units but which will - on a psf basis - will make the units that much more expensive, not less.
at the end of the day you may be able to deliver those smaller units for a lower total cost but those savings will not be proportional to the reduction in area. that 150 sf "second bedroom" is probably the least expensive space that can be taken out of one of those units... the switch to progressively smaller units will take place as market and construction costs rise to much higher levels that than our market currently pays for. until then, there is still a decreasing benefit to the purchaser in terms of total cost vs cost per square foot in getting smaller than you can afford and are prepared to pay for.
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