Hello everyone, "Angeleno" here...

Housing costs in Los Angeles are really high, no question there. However, I want to challenge those of you who think pre-fab is the solution to these high prices! Land is scarce and expensive too!

Pre-fabs in the middle of the forest are beautiful; high-design goes well with nature. These greenfield pre-fabs create the "anomally" that we are all fascinated with - a beautiful home for a relatively low cost.

Urban infill prefabs are a different story altogether. Urban locations are inherently "mature markets" that are characterized by a scarcity of developable land - when land is available, it is either (1) desirable and expensive (usually requiring purchase and teardown of an existing structure), or (2) undesirable and worthless. For example, I worked long and hard to find a mispriced piece of land. I am building on the flat pad at the base of a steep hillside that is currently improved by a small shack. Turns out that the land was priced just about right...by the time I am done paying for the architecture, engineering and concrete necessary to finish the project, I will have invested about the same amount that would have been required to buy a piece of land that was more readily developable.

Real estate markets are pretty darn efficient - you get what you pay for! There really aren't too many anomolies in a mature urban market! Don't think that pre-fab is the solution for the high cost of housing in urban locations!

(stay optimistic!)

Peter