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

The cost of building depends on how well you can organize lots of different workers or by however much your general contractor(worker manager) charges. An already existing home doesn’t require any of that and is ready to move into right away. Most people will pay extra for that.