How?! That’s not anywhere near what you pay for a house now. Can the real price (cost to build) really have multiplied by a factor of 10?
Most of it comes down to:
- Modern houses have much more systems installed. Think HVAC, electricity, hot/cold water, sewage, lightning, networking, etc.
- Safety and quality requirements/expectations of houses have improved. Think thermal insulation, sound insulation, fire safety, roof load, wind resistance, etc.
- Material quality and sustainability have improved. Think no more asbestos, less flammable materials, no more lead in paint and pipes, etc. These were all used because they were very cheap, safer alternatives are often more expensive.
- Wages and safety of workers have improved (for them) significantly.
- Material prices (delivered) have gone up significantly. Partially due to better wages and safety of workers in the supply chain, but also due to scarcity (for example: our population grows faster than trees).
When people complain about the cost of housing, they're usually not talking about the first $100/sqft, but about the other $100-$1400.
Add all that in and you'll see theres a few 100k worth of additional work not in the kit
So that $52k price is really just for building materials and plans, but doesn't include land, permits, building costs.
$25 => $50 due to stricter codes and higher scarcity of some materials
$50 => $100 due to higher wages everywhere in the country
$100 => $200 to $1500 due to intentional supply restrictions in specific areas
The last effect includes a whole range of artificial shortage policies (height and volume limits, zoning, red tape, ...) It also includes the "zooming inflation" on local wages due to the housing shortage's effect on the cost of living.