>>512706172
You have a good understanding of it and housing companies (and car companies) follow the same idea.
If building a luxury home costs $100,000 to build and building a starter home costs $75,000 to build, why the fuck would you ever bother building a starter home if it sells for half as much? They figured that out and they haven't built a one-bathroom house since 1978.
But on the buyer side, average people aren't really gifted far-seers and they barely seem to think about next week, let alone the next decade. So they'll take a piece of shit house if it's big... because it's big. At least in America that's how it works.
After corona scamdemic a lot of people retired and decided to remodel, and there was a swarm of fake remodelers that did shit like hire a crew that knew how to install windows, and try to get them to tile floors or plaster ceilings. It seems those crowds got absorbed into the construction industry at large because they're selling $500,000 right now "move-in ready" that need $150,000 of work so they don't become mold colonies.