Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Market Trends & Data
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 21 days ago on . Most recent reply

User Stats

101
Posts
132
Votes
Austin Wolff
#1 Market Trends & Data Contributor
  • Rental Property Investor
  • Los Angeles, CA
132
Votes |
101
Posts

Where is new construction is actually cheaper?

Austin Wolff
#1 Market Trends & Data Contributor
  • Rental Property Investor
  • Los Angeles, CA
Posted

Zillow has released a nice bar chart revealing places where new construction is actually cheaper than existing homes. 

(You can click on the image to see a bigger version in a new tab.)

Does any of this data surprise any investors?

  • Austin Wolff
  • Most Popular Reply

    User Stats

    6,232
    Posts
    7,237
    Votes
    Dan H.
    #2 General Landlording & Rental Properties Contributor
    • Investor
    • Poway, CA
    7,237
    Votes |
    6,232
    Posts
    Dan H.
    #2 General Landlording & Rental Properties Contributor
    • Investor
    • Poway, CA
    Replied

    I question how Zillow can obtain the cost of new construction.   There are so many items that go into the calculation and I would not trust self reported costs to the state for the property tax increase (for holds they will under report). 

    Note existing home price is easy in my market.  Closed transactions are public record.   They can easily determine an areas PSF.   Calculating land value is getting more challenging due to consistently reduced number of infill open market sales, but still possible.

    In general I would think the candidates for cheaper to build would mostly be the high PSF cities.

  • Dan H.
  • Loading replies...