4 ms·
There may be a housing shortage in the expensive cities, but I doubt there is one nationwide. I’ve come to believe that the real driving phenomenon here is the
by api 5y ago
There may be a housing shortage in the expensive cities, but I doubt there is one nationwide. I’ve come to believe that the real driving phenomenon here is the “you have to be in one of five cities” idea that took hold in the early 2000s.
- chii 5y agobut it is true (sort of) that to earn the big bucks, you have to be in one of the big cities (very rarely do you have high salaries in the lower tier cities). But this increase in pay means the assets tied to those cities must also increase in value, as there are now more cash chasing the same (or similar) amount of assets - exacerbated by zoning, which restricts supply.
- OneEyedRobot 5y agoPerhaps it would simpler to encourage some companies to leave those cities (tax policy?) rather than to build/subsidize new housing.
- klipt 5y agoBut then you don't have to live in a big city to make money, you just have to buy land there.
- imtringued 5y agoWhen people invest internationally their investment money will flow disproportionately into those top 5 cities. Children follow the pension fund of their parents.