Yeah, this is not predicted by classical economics. Westerners really need to look at other countries. You do not see these sorts of extreme housing shortages

Yeah, this is not predicted by classical economics. Westerners really need to look at other countries. You do not see these sorts of extreme housing shortages in Asia. You don't see it in Tokyo, Bangkok, Shanghai, or Seoul. I have trouble even explaining what's happening in places like San Francisco or London or Paris to my Asian partners. That's because Asian cities aren't afraid to grow. Tokyo, Bangkok -- these cities have grown enormously and continue to do so [1]. Ultimately, the West has collectively decided to tombstone their cities. There is enormous demand to live in the West's metro centers and yet, at virtually all levels, powerful forces work to ensure that these cities do not expand to satisfy this demand. This decision not to grow is very much a political decision. The end result here probably won't be good. A great deal of economic growth is being left on table. Cities are the primary engines of economic growth and when they aren't allowed to grow the result is less growth and opportunity. Political instability ticks up; a great deal of many people stuck languishing in less dynamic areas because they can't afford to move to the dynamic cities end up feeling like they're stuck and now want to tear the whole system down. Democracy itself breaks down as the urban-rural divide becomes more and more severe. But hey, in the short term, those who bought early get rich. [1] https://jamesjgleeson.wordpress.com/2018/02/19/how-tokyo-built-its-way-to-abundant-housing/ https://jamesjgleeson.wordpress.com/2018/02/19/how-tokyo-bui...