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It is interesting to me that relatively few people respond to this situation—housing constraints leading to high prices (https://www.aeaweb.org/articles?id=10.1
by jseliger 5y ago
It is interesting to me that relatively few people respond to this situation—housing constraints leading to high prices (https://www.aeaweb.org/articles?id=10.1257/mac.20170388)—by https://www.aeaweb.org/articles?id=10.1257/mac.20170388)—by working to remove the regulatory constraints that prevent people from being able to buy or rent housing units.
- leeroyjenkins11 5y agoI think things would be better if interest rates were higher as well. Inflated home prices are from high demand, but also because so many people can get loans for 350k. People would be less willing to deal with that price tag if they had to deal with 5-7% interest. You'd start having smaller homes being built and lower competition in the market. It would also incentivise people to save for down payments instead of the pay as you go model we have now.
- imtringued 5y agoThose regulatory constraints are there because people want them to be there.