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I agree, it doesn't matter whether there is vacant housing or not, long term. If you supply enough housing to drop excess demand, it will pushing housing prices
by reducesuffering 6y ago
I agree, it doesn't matter whether there is vacant housing or not, long term. If you supply enough housing to drop excess demand, it will pushing housing prices downward, leading to them being a poor investment, and any vacant housing will further sell off, leading to a positive feedback loop of increased housing supply.
- dzhiurgis 6y agoNZ’s Jacinda Ardern openly said they don’t want to see people to go to negative equity meaning they gonna protect them forever.
- reducesuffering 6y agoIs it the lack of free markets causing distortion here? Housing as investment sure is wonky and seems problematic when government intervenes.
- dzhiurgis 6y agoWhen subdividing a lot costs 50k just for paperwork (well there's more than that, but cmon) and takes months... When all imported building materials are spec'd by one company... When there's no competition from foreign labourers and locals doing coke off their fishing boat by 3PM... Yes there's some distortion in market.