Who, other than the taxpayers, should be footing the bill for building modern housing estates with safe utilities, managed forests, firebreaks, and the rest of it?
How about the greedy housing developers ? Same house between CA and for example middle-of-nowhere Texas, or potato-county Idaho : In CA : 1.9 million. In middle Texas 700K, in Idaho : 300K ...
how can you logically explain the same time too build, same materials, same size to have such a difference in cost ? it's not labor or material cost. it's greedy developers examining the market, seeing there is a shortage and milking all they can.
It is easily explained by scarcity. There is only so much dirt and they aren't making any more. There are inexpensive houses built in California all the time but they are so far away from the job centers that it isn't even possible to commute.
Then there is money. There is so much money in and around Silicon Valley that house prices are not the primary concern. The prices keep going up because the wages keep going up because the demand for magic keeps going up.
It's been a long time since I bought a house on the outskirts of the Silicon Valley. I bought a SMALL 3 bedroom house in '86 for about $81k. I sold it in '03 for $291k and it is now worth $390k. But wages are much higher today than they were 33 years ago. Even $81k was stupid when compared to the house I bought, brand new, for $35k in '72.
Not only have tech wages gone up, so have construction costs from wages, materials and new building codes. Everything is more expensive.
And, yes, the developers need to make a profit. I don't imagine, in aggregate, that it is obscene. If it were, the news people would be all over it. There are some very large developers building a lot of homes but nobody stands out as the next billionaire.
Then there are zoning laws. Our City was sued by the Sierra Club into constraining all new housing into backfilling existing areas rather than expanding outwards. That means tearing down old buildings and making new housing, probably high-rise, on the same site. Great! No money in it but great! But then the City was sued into retaining the old buildings because they are historical. OK, maybe we can still work something out. Nope! Fire and earthquake codes have changed and even the exterior construction can't be saved. So, they stay abandoned because they can't be demolished and they can't be upgraded. And then there is the asbestos problems...
So, even if somebody thought they could make money on low income, high-rise housing, it can't be built. Not in our town!
And who wants to spend 6 years in college to live in high-rise housing?