3 ms·
> Induced demand doesn't say what "should" or "shouldn't" happen. It doesn't have morality, it's a pattern. It says that building more housing in an area with
by resoluteteeth 4y ago
> Induced demand doesn't say what "should" or "shouldn't" happen. It doesn't have morality, it's a pattern. It says that building more housing in an area with expensive housing won't bring housing prices down.
Here is the definition of induced demand from wikipedia:
> Induced demand – related to latent demand and generated demand[1] – is the phenomenon that supply increases result in price declines and increased consumption.
Notice that it says "price declines" right there.
- TedShiller 4y agoIn practice this doesn’t happen in big cities. It only increases demand.