[travis bickle]

Originally Posted by wburg

travis bickle: I'm not suggesting that government doesn't add to the cost of the home, but I am very doubtful of econgrad's claim that these fees would nearly triple housing costs (in this example, a $250K loft that Econgrad assesses as worth $90K.) I just think he is overestimating the cost of city fees by a ludicrous degree, and discounting consumer demand entirely.


But then, why do buildings outside the central city neighborhoods cost less? If it is entirely the fees, rather than consumer demand, shouldn't a home in Del Paso Heights or Oak Park cost the same as a house of similar square footage in Midtown or Land Park? And yes, I know the answer to that: people are quite simply willing to pay more for property in Midtown or Land Park than in Del Paso or Oak Park, because the location is more desirable. Econgrad's second fallacy is that he doesn't seem to think that location matters in real estate. I am certain you know better than that, Travis.

Now wait just a darn minute there wburg... are you telling me that location plays a role in the cost of a home?????!!!! Wow!!!! Who knew?

This whole time I thought it was just fees. Are homebuyers aware of this???

Thanks!

Your (now enlightened) friend,

Travis

PS - if you already knew the answer...

Q:

if these "bureaucracies" result in higher prices, why are Sacramento's outer neighborhoods less expensively priced than downtown/midtown? They are governed by the same city government "bureaucracies," but homes are less expensive. Why is that?

A:

because the location is more desirable.

Then why did you ask the question???