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>In fact investing stimulates new construction But this isn’t practically true in most major metropolitan areas. When one makes an investment as large as a hom
by nemothekid 4y ago
>In fact investing stimulates new construction
But this isn’t practically true in most major metropolitan areas. When one makes an investment as large as a home, one of the best ways to protect that investment is to block further construction (reducing supply and therefore raising demand on your investment)
- FredPret 4y agoWell let’s just make that shit illegal and let builders build new houses until supply meets demand. Voila.
- nemothekid 4y ago>"just make that shit illegal" Except those with the money to make investments in real-estate are the very same people who have enough money to make the political system work for them. "Just make that shit illegal" is simply a refusal to understand how complex these incentives are. If it was so simple to just make that shit illegal it would have been done already; we are nearly decade in to the housing crisis in cities like San Francisco and you think people haven't thought about making it illegal? How do you go about doing that? Eventually you will be forced to consider solutions that the GP was referring to.