Skyrocketing Land Costs Have Driven The Runup In Home Prices

United States News News

Skyrocketing Land Costs Have Driven The Runup In Home Prices
United States Latest News,United States Headlines
  • 📰 Forbes
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 53%

If you want to know why home prices have skyrocketed, surpassing even the bubble price levels of 2005-2006, the answer is right under your feet

In some parts of the country, the rates of increase were nothing short of startling. A report just issued by the Harvard Joint Center for Housing Studies shows the parts of Nevada, Colorado, California and Florida that had the most dramatic runups in lot prices.

The most extreme rates of increase were out west, but it should be noted that many east coast markets had slower rates of increase only because they were already at high values. Median lot prices occupied by single-family homes are at $487,000 per acre in Massachusetts and $641,000 in New Jersey. That said, Miami-Dade County saw more than a doubling of median lot values over this period.

When asked why new home prices are higher than before, homebuilder executives refer to the Three"Ls": Land, Labor, and Lumber. In this instance,"land" can refer either to tracts of developed lots, which are increasingly hard to find, or raw land, which the builders have to develop or find somebody to develop for them.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

Forbes /  🏆 394. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

College costs are skyrocketing. Here's how to decide if that high price tag is worth itCollege costs are skyrocketing. Here's how to decide if that high price tag is worth itWith the student loan crisis gaining ground as a key issue in the 2020 presidential race, a new CNBC and Acorns survey has found that a majority of Americans now believe the value of a college education is inextricably tied to whether they have to go into debt to pay for it.
Read more »

I drove a $64,000 BMW Z4 to see if this high-end roadster is worth the steep price tag — here's the verdictI drove a $64,000 BMW Z4 to see if this high-end roadster is worth the steep price tag — here's the verdictThe BMW Z4 has always been a very sporty two-door roadster, and the new-for-2019 model is no exception.
Read more »

Big home, big deal: The Manor in Holmby Hills sets new L.A. County price record at $120 millionBig home, big deal: The Manor in Holmby Hills sets new L.A. County price record at $120 millionThe Manor, a 56,500-square-foot chateau in Holmby Hills, has sold for $120 million — the highest price of any L.A. County residence to date.
Read more »

I'm Done Having A Pity Party Over My 40-Year-Old BodyI'm Done Having A Pity Party Over My 40-Year-Old BodyIn thinking about the loss of my youthful glow, my first instinct was to have a pity party. I wanted to turn back time, for just one night.
Read more »



Render Time: 2025-04-07 16:23:30