2007-03-08 16:26:58 · 7 answers · asked by chanswork 2 in Business & Finance ➔ Renting & Real Estate
I'm wondering about the actual construction / labor costs. Not the demand and supply or cost of land factors.........Isn't material all the same? Why is the costs so much higher in California?
2007-03-08 16:52:09 · update #1
Mostly land costs. However, California also has one of the highest Worker's Compensation Insurance rates in the USA. Also, permit fees, school fees, special assesments etc., are through the roof, due to the passage of Prop 13 in the '70's. The cities, counties and state government charges extra fees to build, to make up for the lower property taxes that Prop 13 brought into place. Not that the property taxes aren't outrageous anyway. It is mostly to punish citizens and continue feeding the bloated state employee appetite.
2007-03-08 16:36:49 · answer #1 · answered by rey m 2 · 1⤊ 0⤋
Supply and demand, more people demand to live in california. Which then increase the cost of property, also the living standard is higher also.
2007-03-08 16:35:42 · answer #2 · answered by Rain L 5 · 0⤊ 0⤋
The difference arises mainly from Demand push on the materials and the available land. opportunities for higher education of children or better avenues for employment etc . are other factors that push Price up through enhanced demand.
2007-03-08 16:44:39 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Because the places are valued as the opportunities that surrounds its. If you live in a place with a large variety of opportunities, your chances to succeed and live a quality life its greater than a place with no opportunities or lacks of it and live a life with less quality and more difficulties. I guess that 's why people migrates from one place to another. They are all after a better life, that can only be achieved by good opportunities. Have you wonder about the price of an apartment in NYC ? Let's not even get it started.
2007-03-08 16:38:34 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It is basic economics: supply and demand. In L.A., for example, there is literally no more land available for building a home, yet there are millions of people there and the numbers continue to grow. In Idaho, there is a LOT of land available for home building and a lot fewer people needing homes.
2007-03-08 16:37:00 · answer #5 · answered by Doctor J 7 · 1⤊ 0⤋
taxes are different in each state
2007-03-08 16:35:57 · answer #6 · answered by Aronda L 2 · 0⤊ 0⤋
COST OF LIVING?????
2007-03-08 16:32:49 · answer #7 · answered by cork 7 · 0⤊ 0⤋