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Shelter inflation appears to be largely demand-induced, is the largest component of the CPI, and is highly elevated. I believe this is even more true in Austra
by jbay808 4y ago
Shelter inflation appears to be largely demand-induced, is the largest component of the CPI, and is highly elevated.
I believe this is even more true in Australia and Canada than it is in the USA.
- arcticbull 4y agoThis is a major cause of inflation but it's mostly a local zoning issue, not a monetary policy issue. These countries straight up refuse to build supply enough to meet demand. (1) many folks have convinced themselves housing can be both a good investment and affordable when these are antithetical goals and... (2) they've also convinced themselves that this is the one market in the history of time where supply and demand magically don't exist, and that increasing supply simply won't reduce prices for some reason.