3 ms·

What? If there was enough supply this wouldn't happen.

• SantalBlush 4y ago
  The supply is being restricted, even among existing buildings. It's trivially true that more buildings will reduce the price, but you'd need to build many more than would be otherwise necessary to bring a significant price decrease because they will continue to restrict the supply by letting existing units sit vacant. In other words, building more properties isn't the main problem here.
  • llampx 4y ago
    More supply is the answer, though. Possibly along with land value tax or vacancy rules. Eg, in Germany if an apartment is owned by a company as opposed to a private person, it is not allowed to stay vacant for no good reason. Cashflow is the lifeblood of a business. The era of cheap money is over. If a company wants to sit on their real estate while other companies are building and filling up their units, they can do so at their own peril. If you haven't noticed with the markets' movements, unrealized gains aren't worth anything.