Something else that encourages bigger houses in my area is the impact fee.
This is a charge on new-build houses that's supposed to go towards the infrastructure to support the new housing developments.
Finding out exactly how much this is in my area has defied a simple search, but a couple of sites are saying $13,500 to $20,000 per home. The variation is based on the exact parcel and is not changed by making the house larger or smaller.
If we assume $150 per square foot for a new house... My house, plus garage and porches, is about $240k new built; but it has the same impact fee as a house twice the size.
Would you rather pay a 10% fee or a 5% fee?
But, since the fees are assessed to the builders and developers before construction begins it trends to fewer lots and larger houses so as to make the fee a smaller portion of the cost of construction.
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