2 ms·
The counter argument is there is so little building happening, that while elasticity may be below 1 now, if we flood the market with construction, it would get
by WillPostForFood 8y ago
The counter argument is there is so little building happening, that while elasticity may be below 1 now, if we flood the market with construction, it would get close to 1. San Francisco added ~20k housing units between 2010 and 2017, an increase of 5%. This isn't even keeping up with demand. Do 20x more building, and then measure the elasticity.
- burfog 8y agoYou can't keep up with demand until the amount of housing (and thus people) is so high that the place becomes miserable enough that people start rejecting it. Different people have different thresholds of misery. Consider that people live in Manila, Mumbai, Guangzhou, and Dhaka. People even used to live in Kowloon Walled City, which looked like something out of the movie Bladerunner or maybe Soylent Green. That is what you'd get.
- Redoubts 8y ago> the amount of housing (and thus people) is so high that the place becomes miserable What a bunch of nonsense.