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> My former mentor bought a house on Nantucket for $150k in 1990, sold for $3.5M earlier this year. That is literally a luxury good with a fixed supply. As the
by com2kid 5y ago
> My former mentor bought a house on Nantucket for $150k in 1990, sold for $3.5M earlier this year.
That is literally a luxury good with a fixed supply. As the # of people who desire that good has sky rocketed generation to generation, of course the price went up.
There are limited production run cars from that era that underwent similar price inflation.
For someone who wants to live in Nantucket, there is literally no substitutable good!
- Spooky23 5y ago> That is literally a luxury good with a fixed supply. As the # of people who desire that good has sky rocketed generation to generation, of course the price went up. We’re arguing the same thing. Everyone wants to go to the beach. The ability to get cash to do so increased demand.
- afiori 5y agoBut the number of people that can pay 3.5 million dollars for an house is much smaller than the number of people that can take have a 3.5 million house financed. If interest rates were sufficiently low (maybe negative) everybody would be in the second category. Having more people willing to pay contributes to price increases