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It’s not the economic system as such that drives up real estate prices, it’s us the people who want to live in a nicer house. We bid up the prices of real estat
by simonh 6y ago
It’s not the economic system as such that drives up real estate prices, it’s us the people who want to live in a nicer house. We bid up the prices of real estate in competition with each other. It’s not some external sinister faceless policy monster, it’s the queues of people who line up to view properties for sale - us.
I’m a Brit but we have this bad here at the moment. A house next to ours came on the market just last week, it wasn’t even listed inline yet but on day one the estate agent had a long list of people registered with them viewing the property all day and got four offers. It’s those people living in my area competing for property driving up house prices.
- clairity 6y agothere's certainly fashionability, ego, and projection in homebuying that drives up bids, which can raise home prices in a given neighborhood over time, but that's largely because supply is artificially limited by things like regulatory capture and demand is distorted by economic policy promoting price inflation. for instance, low interest rates mean that more house can be bought at a given monthly payment amount (everyone seems to assume more is better), which is the economic basis of that ratcheting you're describing.