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The economics of this have been well observed in the car industry. Car makers prioritize luxury cars with higher margins when there is a restriction on how many
by eapressoandcats 4y ago
The economics of this have been well observed in the car industry. Car makers prioritize luxury cars with higher margins when there is a restriction on how many cars they manufacture (due to supply or legal constraints), but if there is abundance, the lower end of the market is well served because there’s just more overall volume there.
- noirbot 4y agoI agree - I'm not trying to imply that no cheaper housing would ever be built if we made it easier to build, but that, as you say with cars, it's more likely to happen later as the restrictions let up. For a community or country, however, there's value in trying to serve people of all economic levels, and not simply serve the needs of the richest first. This is especially true when you're talking about building a city or neighborhood where there's a finite amount of land near a train station on highway. If you wait for builders to "get around to" building cheaper houses, they'll be off in their own area instead of intermingled in the communities that they likely work and go to school in.