Andrew Kaye, former president of the Home Builders Association of Bucks County, who now leads a residential development company operating in the five-county Philadelphia area, noted that building in areas like Bucks County is becoming increasingly expensive, writes Michaelle Bond for The Philadelphia Inquirer.
“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,” Kaye said. “So people are getting locked out. And they’re moving to areas where housing attainability is easier.”
However, his company is managing for now thanks to robust demand for newly built homes and increasing prices, with homes selling for 40 percent more than four years ago in the same towns.
“Most of the areas in Bucks and Montgomery Counties are rate proof,” he said. “If mortgage rates go to 7 percent or come down to, let’s say, 5.5 percent, that’s not going to affect this buyer. [For buyers who have a couple million dollars to spend], they’re not shying away from this market.”
Read more about what’s driving up the cost of home construction in Bucks County and why it’s making housing less attainable for many in The Philadelphia Inquirer.
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