A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to:

Question

Quizplus · Accepted Answer

If current property values are greater than the cost of construction, developers will be incentivized to build new properties, increasing the supply in the market. Conversely, if current property values are lower than the cost of construction, developers will be discouraged from building new properties, leading to a decrease in the supply.

A Primary Determinant of the Feasibility of New Construction Is