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In the long term, if you want lower prices, you must increase supply. To increase supply, allow profits to increase. Increased profits provides increased moti
by orasis 10y ago
In the long term, if you want lower prices, you must increase supply. To increase supply, allow profits to increase. Increased profits provides increased motivation to increase supply.
Cities where people line up to make offers on houses sounds a lot like Venezuela where people are lining up for the grocery stores. The lines in Venezuela are due to price controls which reduce profits thus reducing supply.
- ppereira 10y agoTo increase supply, increase height limits, reduce setbacks, and get rid of zoning regulations that have nothing to do with health and safety.
- orasis 10y agoYes and ultimately limiting height and heavy regulations limit profits which limits investment.
- spenczar5 10y agoIt's not the same thing: people line up at grocery stores because they _need_ food to survive. If you restricted Airbnb, you'd be dampening the supply of hotels and the demand for real estate. When the demand for real estate goes down, its price will go down. The price of hotels would be expected to go up, but I think we can live with that, as its a far more elastic good than housing.
- __jal 10y agoIt is hard for me to imagine any notable impact on property prices even by eliminating every AirBnB rental tonight. I'd love to see people making this claim cite some numbers. Just how many residences are being "diverted" from your preferred use, and where did you get that number? Citing handwavey econ 101 principles is no more convincing when done here than it is, say, in the minimum wage debate.