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At least 1/3 of people rent in most developed economics. Investing in real estate creates dwellings for them to rent. Food, clothing and shelter are basic need
by sien 5y ago
At least 1/3 of people rent in most developed economics. Investing in real estate creates dwellings for them to rent.
Food, clothing and shelter are basic needs. Providing one of them is most certainly creating value.
Real estate is not zero sum. Having shops, schools, offices, factories and whatnot around your real estate makes it more valuable, not less.
There is a problem now around the world in many cities where a great deal of value is created in that government has made it too hard to build new dwellings and the price of dwellings has been rising.
However, there are also cities around the world that have had a lot of growth while having reasonably priced houses.
In 2000, Houston had a population of 3.8M in 2020 it was 6.3 M. From
https://www.macrotrends.net/cities/23014/houston/population https://www.macrotrends.net/cities/23014/houston/population
They have also managed this with affordable housing.
That's something to learn from.
- joshlemer 5y agoIn an ideal world you're right, but in this world where the reality is extreme supply suppression by nimby house owners, real estate is almost zero sum.
- siquick 5y agoYou can build houses all day long but that doesn't automatically make them places anyone can thrive in. Sydney (some of the highest house prices in the world) has a few new estates built outside the city but they suffer from no schools, no shops (except a strip mall equivalent), no parks, no tree cover, and general shoddy building work. https://www.theguardian.com/australia-news/2021/nov/16/ultimately-uninhabitable-western-sydneys-legacy-of-planning-failure https://www.theguardian.com/australia-news/2021/nov/16/ultim...
- deepnotderp 5y agoTexas also has high property taxes and Houston has very lax zoning regulations, both things designed to prevent real estate speculation.