4 ms·
> Zero chance this is linear. A 20% increase would be expected to create more than a 2% decrease. I think this effect is probably complicated by generated dema
by nordsieck 4y ago
> Zero chance this is linear. A 20% increase would be expected to create more than a 2% decrease.
I think this effect is probably complicated by generated demand.
Think about a city like SF or Seattle. Adding a lot of vacancies may not drop prices much for a while. Instead, it'll suck in a lot of people from the surrounding area. It's only after there is enough new construction to overcome that effect that people will see price declines in the city.
Of course, if SF or Seattle is sucking in people from the surrounding areas, then the price of real estate in those areas will decrease substantially. It's all about what you measure.