04-27-2025, 10:43 AM
Great video. A concern I have is the developer currently building $1,000,000 houses and paying $200,000 in development fees. Development fees get dropped to $100,000 overnight. Do you actually believe that the developer will start selling those houses for $900,000? I used these numbers to make the math easy. Would a builder of $500,000 houses suddenly drop the price to $400,000 if people are still lining up to pay $500,000? Even if the prices drop 10% overnight will people end up bidding up the price. Reducing development charges is a great thing but we need to also look at the big picture. In theory building more houses should reduce prices but will builders continue to build if their profit margins decrease?