Trulia Queens, Other/Just Looking in Queens, NY

Why are home builders building new homes when they can't sell their old ones?

Asked by Trulia Queens, Queens, NY Wed Apr 10, 2013

Help the community by answering this question:

Answers

2
BEST ANSWER
The profit margin is higher on a new house and it also sells faster. In New York City (Bronx, Queens, Brooklyn), cost to build a new house is approximately $90 a square foot. A 2000 Sq Ft house cost (Raw Materials and labor only) to build is therefore $180,000. After considering cost of land and other related fees a decent builder total cost should not exceed $250,000. These homes at $400,000 can sell in a week.

It's just math.
0 votes Thank Flag Link Thu Apr 11, 2013
One of the resons builders are putting new homes,if you havent already noticed is that inventory has shrunk dramatically. we are now seeing a shift from a buyers market to sellers market in many areas, in last few months we have been entertertaining the idea of appropriately priced properties.
1 vote Thank Flag Link Thu Apr 18, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer