4 ms·
US immigration is cratering, it's a national crisis nobody cares about. The supply constraint is old but its not why housing is high - housing prices are high
by throw123123123 4y ago
US immigration is cratering, it's a national crisis nobody cares about.
The supply constraint is old but its not why housing is high - housing prices are high even in places where there is a lot of construction. Monetary policy explains it a lot better, and it predicts that at some point the trend will reverse.
- usrn 4y agoPerhaps legal immigration is but immigration overall is very high. I've hit my quota, here's my reply: illegal immigrants still have to live somewhere So they're going to take housing off the market. They manage to rent houses in various ways (employers, government programs, ngos etc.)
- throw123123123 4y agoAn illegal immigrant cant have a bank account, credit check or buy a home. Is that what you perceive as competition in the housing market?
- s1artibartfast 4y agoI'm places like California, illegal immigrants can get state issued drivers license and open bank accounts, and that ignores the simplicity of renting or owning a house in another's name
- pj_mukh 4y agoHousing prices are high in places with construction because the places without construction are larger and are forcibly exporting demand. It’s all about supply.
- usrn 4y agoIt's not exactly all about supply and I talked about that in my original comment but maybe that needs clarification. Yes the prices are high because supply is limited, normally that would drive construction but because the prices are so extremely high and interest rates so low almost everyone has to buy housing with credit. One of the many problems with this is that lenders get to be picky about what exactly people are allowed to buy and one of the things they don't like is people financing new construction. The result is people who could otherwise afford to construct new housing (and construct it in more efficient ways) for themselves in less populated places being forced to compete for the already short supply.
- throw123123123 4y agoSF prices are high so Buenos Aires property prices go up? I doubt it.
- pj_mukh 4y agoBy export, I mean export inter-state. Boise property prices are definitely going up due to SF’s housing dysfunction.