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> There is no employee shortage, ever. Just a shortage of businesses owners who are willing to pay market rate for labor. Is the situation the same for housing
by twtw 8y ago
> There is no employee shortage, ever. Just a shortage of businesses owners who are willing to pay market rate for labor.
Is the situation the same for housing? Is there never a housing shortage, just a shortage of people who are willing to pay market rate for housing?
If not, what are your thoughts on what the difference is?
- kec 8y agoBusinesses can always raise prices to cover higher costs. If they can’t, they’re not viable in the first place. Individuals on the other hand can’t generally just will more money into existence to cover higher housing costs.
- zeveb 8y ago> Businesses can always raise prices to cover higher costs. If they can’t, they’re not viable in the first place. Interesting that 'individuals can always ask for a raise to cover higher costs; if they can't, they're not viable in the first place' might be true, but it sure sounds heartless.
- Spivak 8y agoThat statement only sounds weird because getting a raise without changing jobs is becoming a rarity these days. "If no one will hire you at salary large enough to meet your expenses in $City then you can't afford to live in $City." My skills aren't valuable enough for me to live in say, Manhatten, but I don't think that's outrageous or anything.
- kec 8y agoThe difference (and why I don't think your statement is particularly true) is one of control. Businesses can and do continuously adjust pricing to reflect the market, workers cannot.
- jartelt 8y agoThere are zoning issues that prevent the market from buildings an adequate amount of housing to keep up with demand. You can't just go turn a single family home in Palo Alto into a small apartment complex. There is not an equivalent quota or limit on the number of employees who can work as waiters.