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Housing prices are high in places with construction because the places without construction are larger and are forcibly exporting demand. It’s all about supply
by pj_mukh 4y ago
Housing 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.