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> home prices track construction costs But construction costs track home price so this doesn't prevent an unbounded faster than inflation growth.
by satellite2 5y ago
> home prices track construction costs
But construction costs track home price so this doesn't prevent an unbounded faster than inflation growth.
- rsj_hn 5y agoYes, the correlation is not necessarily causation, but we can add some other data points -- for example the size of new construction has been steadily growing at roughly 2%, which does not suggest any kind of odd explosion in house size as a result of the price going up. Of course ultimately, ability to pay determines the price of housing and also house size.