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> Which is exactly the problem. Housing is for living, not speculating. Basic human needs should probably not be subject to such speculation. You are looking a

> Which is exactly the problem. Housing is for living, not speculating. Basic human needs should probably not be subject to such speculation. You are looking at the wrong culprit. If there is a piece of undeveloped land, and a foreigner builds a house completely uninhabited, the housing stock in the market has a delta of 0. If there is an owner that sells their house to a foreigner and buys a new one, the housing stock is till the same. They dont affect supply in abstract, they affect supply if there are significant zoning restrictions that do create artifical scarcity.

naasking 9y ago
> If there is a piece of undeveloped land, and a foreigner builds a house completely uninhabited, the housing stock in the market has a delta of 0. If there is an owner that sells their house to a foreigner and buys a new one, the housing stock is till the same We're not talking about supply, we're talking about price. The OP said, "and the extra demand increases the value of properties the locals own." Increasingly unaffordable housing is exactly the problem.
- barrkel 9y ago
  Yes, but the locals are also wealthier (albeit property owners).
  - naasking 9y ago
    So wealthy they get priced out of the market when they sell and are then forced to move.
    - conanbatt 9y ago
      sell for a huge profit and relocate, what a tragedy has fell upon the paupers.
      - naasking 9y ago
        Indeed, because you've now just exacerbated the infrastructure, commuting and transport problems. There are lots of negative externalities to consider.