Andrew Kaye, former president of the Home Builders Association of Montgomery County who now leads a residential development company operating in the five-county Philadelphia area, noted that building in Pennsylvania is becoming increasingly expensive, writes Michaelle Bond for the Philadelphia Business Journal.
“The cost to buy ground is bigger, the cost to develop ground is bigger, the cost to build a house is bigger, and the for-sale price is bigger,” he said. “So people are getting locked out. And they’re moving to areas where housing attainability is easier.”
However, his company is making it work for now because of the strong demand for newly constructed homes and the increasing prices. For example, in New Jersey, the company can sell houses in the same town for 40 percent more than it could four years ago.
“And in areas throughout Montgomery and Bucks County, we have the same situation,” he said. “We can sell a house in, let’s say, Whitpain Township, Blue Bell for 30 percent more than we sold it for a few years ago, and nobody is blinking an eye.”
Read more about Andrew Kaye in the Philadelphia Business Journal.
