California Real Estate Practice Exam

If other factors are equal, how are the costs of a two-story house and a one-story house related?

1. There is no cost relationship between the two types of houses

2. The cost factors are equal

3. It is less costly to build a two-story house

4. It is more costly to build a two-story house

The correct answer is: There is no cost relationship between the two types of houses

The costs of constructing a two-story house compared to a one-story house can vary based on several factors, such as materials, design, and local building codes. However, generally speaking, both types of houses will have their own unique cost considerations, and the relationship between the costs isn't straightforward. With a two-story house, you often have the benefit of a smaller footprint on the lot, which can be more advantageous in terms of land use and sometimes less expensive in relation to the land. However, there are also additional costs associated with added structural elements, such as reinforcement to accommodate the second story, and the construction of stairs, which could increase the overall expense. In contrast, a one-story house typically involves fewer structural complexities and accessories like stairs. This may lead to lower initial construction costs because it's often simpler to build. Ultimately, while one type might be cost-efficient in certain scenarios, there's no absolute correlation that consistently dictates which is less expensive universally. Hence, the notion that there’s no cost relationship recognizes that the total costs are influenced by a variety of factors and cannot be defined solely by the number of stories in the home.