Why are home prices skyrocketing with all of there illegals building them for cheap?
Question:
Answers:
price of land, the house by itself is cheap, its the land its sitting on thats worth all the money.
it is the cost of the construction materials.
first of all, china and india are in such big building booms, they are taking a lot of the available contruction materials such a dry wall, aluminum, and concrete causing a shortage and so the prices increase.
second, with the price of gas so high, every thing you buy that depends on transportation is going up in price.
the builder is trying to build the house for as little money as possable. most trades bid on the job, who ever has the lowest bid gets the job. the builder is trying to make as much profit as he can.
The value of a house has little to do with the cost associated with building it (material/labor costs etc)... the value is demand driven (the whole supply/demand economics thing).
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