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> Unlike say house. Which might retain the same value to me even if its market dollar value doubled overnight. I think this needs to be thought carefully. A ho
by nileshtrivedi 5y ago
> Unlike say house. Which might retain the same value to me even if its market dollar value doubled overnight.
I think this needs to be thought carefully. A house, because it's saleable, represents an opportunity cost. If the market value doubles overnight, a rational actor should re-evaluate whether it is still the best course to continue to live in it, rather than sell it.
- oarsinsync 5y ago> If the market value doubles overnight, a rational actor should re-evaluate whether it is still the best course to continue to live in it, rather than sell it. If the rational actor's home has doubled in value, does the actor live in an exceptional home, or have all homes similarly doubled in value? Does a rational actor factor in where they intend to live in their calculation? How does that weight against the dollar value of the house they own?
- bluGill 5y agoA few rational actors are to move to some lower priced area and will do so. They are mostly retired people. Though sometimes a low cost area will target small business to move to them.