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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: fatty who wrote (30756)5/5/2005 5:58:09 PM
From: Elroy JetsonRead Replies (1) of 306849
 
The ratio between building and land varies over time and varies by location.

In urban California the ratio, before this current bubble, was roughly 1/3 structure and 2/3 land. Some coastal areas were 10% structure and 90% land.

Since building costs have not increased greatly since 1996, but home prices have, I would guess the typical ratio is now 1/6 structure and 5/6 land.

I have been told that when I was a small child, ratios in California were the reverse, with 2/3 structure and 1/3 land. When I was in Houston last year, the ratio for new homes was 90% structure and 10% land.
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