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

To add to this. Buying a brand new build means it will be many years before you need to replace the roof, hvac, water heater, carpet, fixtures, etc. with older homes you may need to replace those things much earlier or immediately depending on the condition. With very old homes, there’s risk of damage, bad building materials that may need remediation like asbestos, outdated wiring, etc.