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> the housing crisis when the problem is one of distribution, not one of supply. What’s your thesis for this? If the supply suddenly quintupled in the Bay Area
by 3fe9a03ccd14ca5 7y ago
> the housing crisis when the problem is one of distribution, not one of supply.
What’s your thesis for this? If the supply suddenly quintupled in the Bay Area and the population halved, I doubt we’d be calling it a “housing crisis”. Prices would fall dramatically because of supply.
- beefalo 7y agoThe constricted supply is very much related to the treatment of primary residences as an investment. Quintupling the supply would definitely cause prices to fall, but any homeowner in their right mind opposes that development because they might lose $500k+ of property value.
- 3fe9a03ccd14ca5 7y agoIf this were true, then it would be true for every city everywhere. Which we know it’s not. For example, look at cities with much friendlier building regulations such as Dallas.