If there is no price change, but quality changes, prices have gone up. Consumers may not realize that they are getting less if the price is the same but builders are deleting features. This example illustrates the importance of doing your homework when buying a new home. Knowing the pattern of pricing and inclusions for a specific housing development can help buyers negotiate the best price and the most new home features for their needs. This breakdown into three indexes is obviously hypothetical since you cannot buy a house on its own, however, it is valuable in analyzing whether construction costs or land values are driving up prices.
People can make their own decisions.
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