The cost of doing business?

Friday, February 02, 2018

What is your reaction to these various pieces of information?

Greenfield Recorder’s Jan. 19 article “Parking garage in jeopardy?” — “Margo Jones ... associate for the project ... ‘It was budgeted four years ago and everything has gone up,’ she added. ‘There’s a 4 percent increase in construction costs per year, and that’s just the cost of doing business.’”

Kiplinger’s Personal Finance February edition — “From 2012 to 2017 ... the overall consumer price index increased by 6.6 percent.”

For those five years, that is an average percent increase of 1.3 percent. Why is the “cost of doing business” (4 percent) so divorced from the rest of the world in which we live (1.3 percent)?

Greenfield Recorder’s January 16 article “Managing the welcome for Puerto Rican families” — “It’s very difficult to create housing nowadays with regulations.” According to the mayor (Bill Martin, Greenfield), it costs about $300,000 per affordable housing unit ...”

A Jan. 9, Cohn & Company Real Estate email titled “2017 Market Report” — “ ... 643 single family homes sold in Franklin County in 2017.”

Looking at the table provided shows a total of 144 houses that were sold for less than $150,000, another 159 from $150,000 to $199,999, another 130 from $200,000 to $249,999, and another 104 from $250,000 to $299,999.”

That’s a total of 537 houses sold for less than $300,000 with 433 of them being sold for less than $250,000, yet, regulations end up costing about $300,000 just to create a unit?

Again, I ask what is your reaction to these various pieces of information?

Vinny Natale