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> The housing problem is a problem of demand Prices are set by the balance of demand and supply. The demand isn't going away. The supply is what we can do so
by ScottBurson 7y ago
> The housing problem is a problem of demand
Prices are set by the balance of demand and supply. The demand isn't going away. The supply is what we can do something about.
Even building expensive luxury apartments helps, unless no one can afford them at all (which is not what the builder wants to happen). The people who rent those aren't taking up spaces others could have afforded.
- DataWorker 7y agoDemand is mediated by policy. Tax corporate real estate to create incentives for companies to locate where it’s beneficial to citizens. That’s one way to better manage demand. And we have to manage demand or we create a lot of failed cities like Detroit. Boomtowns are avoidable with sensible policy. We need those policies to keep people from exploiting humans herd like instincts for profit.