6 ms·
Yes but there are 2 main types of demand in there. Demand coming from institutional and extremely wealthy investors and demand from regular folks. Who do you th
by Valakas_ 5y ago
Yes but there are 2 main types of demand in there. Demand coming from institutional and extremely wealthy investors and demand from regular folks. Who do you think is more likely to be the responsible for such an increase in price?
So i disagree with the solution you propose. The better solution is to reduce the type of demand that is responsible for this failure in housing prices.
- qeternity 5y ago> Who do you think is more likely to be the responsible for such an increase in price? They of course are contributing factors and if you want to regulate that, fine, go ahead. But they absolutely are not driving prices higher. Investors have tons of alternatives to invest in if prices are too high. People don’t have alternative forms of shelter, so they will tend to pay whatever the price is. And society facilitates and exacerbates this through well meaning efforts like “affordable housing” policies that artificially reduce interest rates and drive demand higher. The bigger issue is that housing and property should never have become a de facto investment class. You should not earn inflation adjusted returns for owning a house. But of course, most wealth in the world is due to housing. And the next generations just increasingly get screwed over.