Construction is one of those sectors which has a high rate of crash and burn and many contractors go out of business every year because of the unpredictability. The margins are very slim as that fact illustrates. This means that there is very little discretionary pricing and far less leeway than you imply. This is certainly the case in the same geographical area.
In addition, the cost of the inputs also varies in high demand and low demand times. There are very few, if any, situations where the builder can just take an extra hundred grand in profit.
If what you say was true the profit rate would be much higher in construction than it actually is.
It's not unpredictability. They just get overextended.
In addition, the cost of the inputs also varies in high demand and low demand times.
Not really, prices for building materials usually stay the same and if they do change, there is plenty of time to take that into account.
There are very few, if any, situations where the builder can just take an extra hundred grand in profit.
It depends on whether is it a high market or low market demand area.
If what you say was true the profit rate would be much higher in construction than it actually is.
Oh it is in some places. Unless you have lived under a rock, you have heard of the insanely high cost for houses in some place like Calf.