Reams and reams of data are available for housing leaders to develop strategy and make decisions based on quantifiable information. Finding and prioritizing the right data is a science that will be discussed at HIVE. Here, one of this year's panelists, Issi Romem, shares valuable data on land costs.
Bounded by the Pacific Ocean and two of the Los Angeles area’s most exclusive country clubs, the 90402 zip code would meet most definitions of prime real estate. In fact, according to a new study, it’s the most exclusive address in the U.S.
It’s not about the well-heeled homeowners there, though with average home prices exceeding $4 million, you’ll find plenty of those. It’s about the zoning restrictions, which the study found are preventing builders from supplying the market with more homes that buyers want.
The chart reflects an analysis by Issi Romem, chief economist of BuildZoom, a San Francisco-based company that connects homeowners with building contractors.
Romem set out to identify areas where home values outstrip the construction cost of new homes, giving builders a natural incentive to put up more of them. He took the average home value in a given area and subtracted the estimated average value of the sticks and bricks. The data came from the census; the full methodology is here.
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