The Residual Valuation Model

The Residual Valuation Model

Why Legislators Have Nothing to Fear from Tougher Building Standards

Simple isn’t it? A chain of logic that seems irrefutable.

Legislate to make developers build better (low energy) homes and their build costs will rise.
These homes will not command a higher price, because the market is dominated by the price of existing homes for sale.
So the developer will make less profit.

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