Posted Dec 16, 2015, 9:28 PM
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Honored Member
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Join Date: May 2012
Location: Austin, TX
Posts: 726
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I'm just pulling this hypothesis out of my arse, but wouldn't there tend to be a cost factor driven by a city's ordinances and relative building costs? A city that's desperate for new bodies and businesses may be apt to have lax zoning, low barriers to entry, and might even throw money at anyone promising to bring jobs to town, whereas high-demand boomtowns like SF and Austin are in a position to bargain with developers and add costs through all sorts of mechanisms. I don't know how big a factor this would be, probably MUCH less than half of the cost differential, but it's probably non-trivial. And the Bay Area has to build everything to withstand earthquakes (in theory), much of that on infill that liquifies in stronger quakes. That must add a staggeringly high cost to most large projects there.
Another factor is the expectation of buyers and renters. Austin and SF expectations are for high quality and lots of amenities, so builders take that into account and this adds a lot to the final cost.
Also (another random thought here), I wonder how much of the price differential between central Austin and the suburbs is driven by how much people are willing to pay to not have to sit in traffic on one of our delightful linear parking lots. If I were a commuter, I'd most certainly pay a hefty premium to minimize that headache. But of course there are plenty of other factors making most of central Austin more appealing than, say, Hutto. Do I really need to list them?
Having said all the above, I realize that I'm stating the obvious to a point where this is just an absolutely absurd post, but with no "delete comment" option on this forum, I'll leave it as a testimonial to the effects of repeated TBI.
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