If housing prices are so high because of limited supply, why is it (usually) more expensive to build a home than to buy one?

Question

Shouldn’t it cost less? Is it to do with construction costs being high for unrelated reasons?

In: Economics

Answer 1

Anecdotal, but we built a house about 3 years ago, for a little over $300 thousand in a new neighborhood. We could get well over $400,000 almost immediately.