We are experiencing high construction costs as seen in the price of copper, steel, cement, machinery, tools, oil-derived products such as roofing and carpet and at the same time the price of existing inventory of homes is well below replacement costs. You also need to consider development costs such as utilities, sewer and water treatment plants, schools, fire, police and contend with environmental regulations. Large swaths of land are only available for development away from urban centers which presents a problem with the rising costs of gas and commuting.
Have you tried to do a small home remodeling? Price of all kinds of construction materials have almost doubled since the housing bubble bursted in 2006/2007. Once the existing inventory of homes is depleted housing will be only for the wealthy.
