4 ms·
I think the more crucial part of the japanese example is > housing is generally a depreciating asset Housing cannot simultaneously be affordable and a good in
by hannasanarion 6y ago
I think the more crucial part of the japanese example is
> housing is generally a depreciating asset
Housing cannot simultaneously be affordable and a good investment. In America, policymakers tend to prioritize real estate value over the ability of housing to actually house people. Homebuyers expect and demand that the values of their properties, including the rents that they generate, be constantly increasing. Supply and demand doesn't push prices down, because housing is inelastic: when you hike prices outside of people's means, they don't stop buying, they find more means, either by taking on more roommates, more jobs, or by making big cuts elsewhere in their budgets.
Before the housing market was commodified and public housing looted by private interests in the 70s and 80s, spending 20% of your income on housing was considered absurdly high. Now 50% is the norm, because landlords and speculators keep raising prices and you can't not live in a house.
- fomine3 6y agoI'm very curious why US housing price is still increasing despite of US' car culture and big land area.
- deleted 6y ago[deleted]
- andromeduck 6y agopublic transportation sucks and traffic doesn't scale well with single occupancy vehicles - at some point spending 6 hours per day in traffic just isn't worth it
- hannasanarion 6y agoPrivate cars are a horribly inefficient way to move people. A lane of traffic can move about 1500 people per hour at most (traffic at full speed, every car totally full), in real life its more like 800 people per hour. Compare that to 10,000-25,000 people per hour on a commuter train. By focusing development around cars, American cities actually decrease the practical size of the metropolitan area.
- blackrock 6y agoThe problem is sitting next to an idiot on the train that refuses to wear a mask.
- MaxBarraclough 6y ago> when you hike prices outside of people's means, they don't stop buying, they find more means, either by taking on more roommates, more jobs, or by making big cuts elsewhere in their budgets. Don't forget debt. I think there's a comparison to be drawn with healthcare costs here.