Those aren’t invalid things to drive a markets costs. I would say modern building codes that are used to ensure safety standards and accessibility are true drivers of cost. Achieving new standards without a cost increase is unrealistic.
Older higher quality doors need to be replaced with inferior quality doors that have UL stickers.
They did for my project. Code compliance number driver of cost by a longshot in change of use renovation project. The sprinkler system and the 4’ vertical lift cost as much as the 12,000 sq foot building on 1 acre.
Structures do cost more. This is mostly increases in labor and code compliance costs. In hot markets the structure cost is dwarfed by the land cost though. There is only so much prime real estate available. That won't stop techies from trying to build a house in a factory to bring down prices, even though that makes little sense.
Here, in Ireland, the cost is pushed up mostly by planning. There's plenty of space, but due to planning (mostly limited by NIMBYs and apparently professional objectors), it is difficult to actually get approval for anything.
There's plenty of space and myriad of old houses in a state of decomposition, but only houses can be built, and apartments are scarce. People are going into bidding wars where you need to throw an extra 20% just to win the bid.
It certainly isn't the cost of materials or labor costs.
