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

its not the house that is expensive because of limited supply, it is the land it is built on.

Although you are wrong. Its generally less expensive to build than buy, it just takes more work and you cant move in immediately (since its not built yet).