I think part of the problem is the cost to build and renovate in other countries...
Developed countries don't seem to have the cheap labour that we do here - and the labour they do have are often more skilled = more expensive.
Old colleague of mine spent a few years in NZ, he said cheap labour was both one of the best things and worst things about SA.
The labor aspect is interesting, and has other knock on effects worth considering. For example, say someone in SA wants to update their A/V equipment in their house. This would cost, say $10k labor and $20k equipment. To do the exact same thing in the US may cost $30k labor and $15k equipment (equipment being cheaper), so overall it’s $30k vs $45k, so 50% more expensive in the US.
The knock on effect is that nobody in the US is going to spend 2x the equipment price on labor. More likely, they would opt for $30k labor installing $70k worth of equipment (not additional equipment, just newer/better models). So now they’re at $100k, and it costs 3.3x what an upgrade would cost in SA. However, obviously the end result is very different, but people will still often compare the two total costs like they’re apples to apples (and not just A/V, pools, bathrooms, kitchens, roofs, etc.).
The general point being that the common trope:
“The same house in country/city X is Y times more expensive”, usually has the caveat that they’re not actually the same house at all because of the labor vs goods discrepancy.
Funnily enough, in SA to get the same upgrade, you would likely need $10k labor and $70k * 1.5 (or so due to taxes), so it ends up costing $115k total.
Then there’s the risk that you’ve got a bunch of impoverished laborers who know you have $105k of equipment in your house, so one day you come home and it’s all gone, but that’s another story.
