[drewrbaker]

In 2019 I purchased land in Mt Washington, about 15mins outside downtown Los Angeles for $200k. My father is a builder back home in Australia so we know more about building that most. Even the after 3+ years, we finally received permits. The city is making us widen the road ($75k), extend a water main 12 feet ($75k), move 3 power poles (can’t get LADWP to tell us what that’s going to cost yet as they have to design it) and install a septic system. We are going to go all electric so we don’t have to run gas lines.

The amount of bureaucracy is insane. Often times we have been the go between for different departments of city that have offices in the same building as each other. They all point the finger at each other. Can’t get answers to the power pole questions from LA DWP without Bureau of Street Lighting, Bureau of street lighting won’t do anything with out LA DWP etc… it’s madness.

House will be 3200sqft, very nice with a pool but lots of value engineering (thanks to my dad). Construction budget is $2m. Will be getting a construction loan. Requires monthly income of $35k combined. Lucky I’m doing this with my twin brother, so we might just be able to afford it, but currently can not due to interest rate rises since we started. Swinging big.

Bank appraised finished project at $3.5m.

My take away from the whole process is that LA infrastructure is terrible, and the city has effectively made it impossible for new construction by family’s. LA DWP single handedly cost us a year in permitting and its incentives are just so not aligned with home owners. My dream is we can go solar and batteries and tell them to get lost. I now have a real respect for what Starlink is doing. Down with the entrenched utilities!!!

You have to be rich to build a house in LA. Renovation is the only real option for individuals. Which just drives up house prices. New houses built is the only way out I think, and the government seems to only be making it harder.

[elihu]

I've looked into building in Portland OR. I don't think we're quite as bad as what you describe (except for the bureaucracy which is spot on), but I came to the conclusion that there'd be about $100k in fees. Just the fees to be allowed to hook up to the city sewer I think came out around $30k if I understand them correctly. (It's possible I'm missing something. I'm not an expert.)

For some people that's probably a bargain, but if you're not wealthy it's a lot of money just for /permission/ to do something.

[ProllyInfamous]

In my AHJ, if the sewer line passes by your property YOU HAVE TO PAY DISPOSAL/SEWAGE FEES (based on water usage), even if you have your own functional and safe septic system.

[htag]

A lot of what you are describing is regional issues for costal cities. My specific comment was pointing that {Base land + Materials + Labor} is very expensive, and while addressing these fees and red tape might be important, it's not the whole cake. I was also targeting a more modest experience.

In Texas it might be $40k land (varies by size and location), $250k for construction ($115/sqft * 2250 sqft), and maybe $50k for utilities/landscaping/driveway/permits etc (varies by taste and location). So $350k for a house in a state with a $70k median household income. With a 20% downpayment and a 6.5% interest rate this median family for a median house would spend 1 year salary on the downpayment and over a third of their gross income on the mortgage. If they had a typical amount of debt from cars, credit cards, or student loans their DTI would be too high to qualify.

EDIT: To my original point. Saying "Build more homes" is an oversimplification. Homes are largely priced such that they equal {Land + Building value}, and new homes are largely priced at { Land + Construction costs + reasonable margin for developer }. If you want to build more homes, look at how building can be cheaper. There are some clear low hanging fruit you are describing in your LA experience, but even where the regulatory environment and labor costs are more reasonable the numbers don't crunch well. Let's have conversations about how to reduce the cost of producing housing. Getting cost low enough that the median household income can afford new construction would absolutely drive up the number of homes being built.

[ProllyInfamous]

I have built a personal house with two brothers — one my own Twin — and wow ya'll are in for an undertaking.

I've built, all-together, about similar budget (for two houses with brothers) and I don't even think I have enough energy to build my own house, now. But gonna try, on some land in a county with minimal regulations.

House Twin and I built was in a Historic District, which was the biggest nightmare of the entire construction. We literally did the rebar and formwork and roof and plumbing and electrical. And they made us re-do windows and other such bullshit to "be in conformity with the neighborhood, but without giving the impression of being historic itself." JFC, make up your minds [worse than any HOA nightmare].

[brabel]

> move 3 power poles > House will be 3200sqft > Construction budget is $2m > impossible for new construction by family’s

Sorry, but this looks like one of the most incredibly out-of-touch rich people comments I've ever read. You're building a freaking castle in the middle of the city, moving roads around, and then you go on to say "families" can't build??

Maybe you're right and even building a modest home in the suburbs is harder than it should, but your project is definitely not proof of that.

[LocalH]

Did you miss where they stated the city is making them do that stuff?

[ac29]

Choosing to build a giant home in the LA hills with a budget of $2M just for construction is the out of touch rich people thing, not the additional issues with the city.

[drewrbaker]

I think you missed my point. Our land is super cheap for LA (hence all the infrastructure work). Even if we built a garden shack on it, we’d have spent $600k. How could a working class family ever afford to build a house like this?

If the goal is more houses, make them faster and easier to build. Less red tape, less infrastructure requirements. Otherwise it’s only well of people like me that can (barely) afford them.

Now I’m sure you’ll say “don’t live in a coastal city then”. That where the work is. And it’s also where 40k homeless people live. Connect the dots. We need more houses. There is land to build them, it’s just insane to do that under current rules.