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1. Construction is “cheap” 2. It is semi unskilled labor. 3. There is land scarcity 4. There is great arbitrage between purchasing a lot, building and selling.

If you can accomplish a few deals, wind and dine local (and I mean local local) investors and banks - money flows and you have a name for yourself.

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At least in Canada, the cost to build a typical home is soaring. A friend in Victoria bought a year ago and wanted another for his parents. An extra 150K for an 800K (originally) home.

Since 2019, construction costs are up 50%.

https://thoughtleadership.rbc.com/proof-point-soaring-constr...

I do mostly construction financing for a living and can confirm, housing construction costs in BC are ludicrous. A major factor in the jump is the build code changes and new environmental and safety requirements. All those extra electrical circuits and that extra insulation is making houses significantly more expensive than they used to be.

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