The labor theory of value is fundamentally misguided and will lead to a misallocation of resources. Market signals allow people to coordinate their activities

The labor theory of value is fundamentally misguided and will lead to a misallocation of resources. Market signals allow people to coordinate their activities. If housing is getting more expensive it means that it will be more profitable for me to build houses instead of something else, then I'll do it. Eventually housing will get cheaper and I'll move on to the next thing.