3 ms·
The cost of housing is mainly in the cost of renting the land from a landowner (or the cost of paying the mortgage having bought the land). That is linked to th
by iso1631 5y ago
The cost of housing is mainly in the cost of renting the land from a landowner (or the cost of paying the mortgage having bought the land). That is linked to the amount people can spend.
If other things increase in price, people have less money to spend on housing, rents go down, which leads to house prices going down.
- ClumsyPilot 5y agoYour economic model seems to boil down to "all money that can be spared flows to landowners"
- concordDance 5y agoThat's roughly how it works in the South East of England. London has the worst [years of wages] for 1 square meter of housing ratio in the world. Excluding Hong Kong.