[shagie]

The cost of land and labor to build a house is relatively the same no matter what house you build. This also applies to apartment buildings.

Fancy it up a bit (mostly nicer appliances) beyond that and you take a $300k house to a $1M house.

Developers make about 20% on the total ( https://www.nahb.org/news-and-economics/press-releases/2025/... ). They'd rather make 20% of $1M than 20% of $300k. Same work crew either way.

Next question then becomes "is it better to sell 3 houses at $1M each ($600k for the developer) out of 10, or all 10 houses at $300k ($600k for the developer)?"

This also applies to apartments. Do you build 200 "luxury" units? or 200 affordable ones?