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Couple of things that seems incorrect: 1. You are not born short housing. The population in western countries is growing very slowly and the new construction h
by sytelus 11y ago
Couple of things that seems incorrect:
1. You are not born short housing. The population in western countries is growing very slowly and the new construction has kept up with it very easily. The problem occurs because of population movement. For example, massive people moving from many different areas to one single area.
2. Buying home is not always a value proposition. In fact, for most people it is actually not until late in the cycle and tax benefits more likely cancels out with other expenses like property taxes, maintenance and HOA. My feeling is that most people ends up cutting down other costs to compensate and thus they experience overall decrease in the living standards, however I don't have data to support this.
- fiatmoney 11y agoWhen I say "born short housing", I mean you must acquire housing of some kind in order to just exist in society. It's not a "housing / no housing" choice, it's a "buy / rent" choice wherever you are.
- jdmichal 11y ago> You are not born short housing. That must have been a fun birth... I'm guessing C-section? More seriously, being short means you have a position you need to buy in order to cover. Unless those builders are giving those new houses away, guess what, you're still short until you buy one. Your other point, however, is very good. From a purely mathematical perspective, it doesn't always work out in your favor. But there's also a lot of intangibles that come into play with something as personal as housing.