Construction optimism from Kobi Lefokovitz:
In Los Angeles, “luxury” units in non-high-raise can be distributed for approximately $ 300,000 to $ 400,000 per unit. Non-“luxury” market rate units can be completed for half that is conditional in their size and location. On the other hand, the capital “A” affordable units, which can often spend more than $ 850,000 for a small and grip -hit space. In San Francisco, they regularly spend more than a million dollars. In New York, where the inexpensive construction mechanism is stronger … some units can still run as high as $ 750,000.
“Cheap” and real materials and labor costs for the construction of market rate apartments are no different. Why is it that the cost of “cheap” housing is so high?
Contracts for the construction of affordable housing using public funds often require the use of federal labor with prevailing wage requirements … comprehensive environmental reviews, and years of community outreach … as a rule, as a rule, as a rule, faces a financing difference to manufacture affordable housing projects. Unlike market rate development, who can attract investment and financing from private individuals and institutions because the returns they provide do not give any returns. Thus, they should rely on federal subsidy, municipal cofers and grants, who have no expectation of yield with credit investors by doing some selected tax …
In addition, regulation, oversight and delays are much more common in affordable housing units than market-by units.
You can find more interesting information about how our communities are created in the creation of optimism: the way our world does, and how to make it better.
