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If we're going to look at supply-demand, we can't just say "just add more supply" without knowing where the demand comes from. If we add supply of houses and it
by gjulianm 4y ago
If we're going to look at supply-demand, we can't just say "just add more supply" without knowing where the demand comes from. If we add supply of houses and it gets eaten up by demand from people that want them not to live but to hoard them as financial instruments, we're not solving anything.
- foogazi 4y ago> If we add supply of houses and it gets eaten up by demand from people that want them not Wouldn’t the demand still exist allowing for more supply to be filled by those still wanting a house ?
- ethor 4y agoAn increase in supply of housing would also dampen the demand for renting, thus decreasing the willingness of speculators to buy new rental units.
- cudgy 4y agoThis does nothing to dampen the hoarding of homes for investors that are looking for a place to park their cash due to low returns/high risk from other asset classes. Generally, it is looking like housing being an investment by corporations and foreign interests is having a negative impact on the population that actually lives where the homes are located.
- gjulianm 4y agoOnly if those houses are affordable for the people that are demanding renting. And if rent prices are high, people can't save and can't buy anything.