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Where does a new home's price go, and which levers move it most?

research/house-cost

Where does a new home's price go, and which levers move it most? Share-anchored model (NAHB 2024): size moves the price most (87.8 to 112.0 for 1,600 to 2,400 sq ft), then storeys, finish level and lot; a 14% framing-lumber cut is worth 0.85% of price (2.4% with labour). Index not dollars, assumed driver splits. Milestone 4 of track 12.

8 tests

What it found

A driver-based price model anchored on NAHB's 2024 cost shares (construction 64.4% of the price, framing 16.6% of construction, lot 13.7%, profit 11.0%). Each construction stage scales with floor area, footprint or wall area, and the model reproduces every NAHB share at its 2,000 sq ft reference house. In a sweep, size moves the price most (index 87.8 to 112.0 for 1,600 to 2,400 sq ft), then one against three storeys (111.6 to 97.6), finish level, lot price and foundation type. A 14% cut in framing lumber, the gap between house-plan's default and best plans, is worth only 0.85% of the price, or 2.4% if it also cuts framing labour by 20%. Stylised: a price index, not dollars; the stage-driver splits and lever ranges are my assumptions; the Census reconciliation and a priced takeoff are not done.

A figure from its own output

Figure produced by research/house-cost: levers
house-cost/experiments/levers.svg, written by the project's own experiment code.

Paper, code and results

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Proper scoring & elicitation28Effort & peer prediction9Verification games & slashing19Detection & tolerances14Markets as routers13Prediction-market design9Paying contributors8Decentralised training systems23Digital twins & sim-to-real164LLM chip design loops40Robot manufacturing loops53Ambient AI assistant46Self-replicating manufacturing34Simulation-first design64Engineered clothing45Task-specific AI accelerators40Algorithmic chip-design loops42Open-source purpose-built robots44The software-engineering loop43Adversarial human imitation41Open-source residential construction41Autonomous multi-angle capture34Sensing, imaging and 3D31Energy supply and dense energy storage39Robot societies among people31Agentic co-design of low-cost robots27Laundry-hanging robots25Machine learning on qualitative data23Robots on the building site27Civilizations & group psychology1History & human sciences1

Produced with AI assistance (Claude). Results are from the code in this repository and are simulated or stylised unless the abstract says otherwise; nothing here implies affiliation with or endorsement by any lab, researcher or company cited. MIT licensed.