3 ms·

Housing has plenty of inelastic demand and it's getting worse[1]. This isn't a controversial statement. 1. https://cepr.org/voxeu/columns/declining-elasticity-

• carom 4y ago
  The article you linked is titled "The declining elasticity of US housing supply", where as all your comments speak about "demand". >The more inelastic housing supply becomes, the more rising demand translates into rising prices and the less into additional housebuilding. My argument is that we should remove barriers to building housing so that increases in demand (it is already very high) translate into more houses. Landlords aren't the problem. The single family zoning that constrains supply is.
  • kelseyfrog 4y ago
    Thank you. My mistake. Either way http://www.nber.org/papers/w22816 http://www.nber.org/papers/w22816 shows statistically significant demand inelasticity with the relevant section being > a simple regression of the log median rental share on the rental price index, recovering a median expenditure share, sy, of 22.5 percent, and an implied price elasticity, εy,p of -0.83. ... The regression line has slope β1 = −β2 in equation (5b), with β3 = β4 = 0 imposed. Both slopes are positive and statistically significant, indicating demand is price-inelastic
    • carom 4y ago
      This is like having a conversation with a wall.