2 ms·
>Lagging demand some amount is probably the easiest way to optimize this. I actually agree with this to some extent. The point is that we aren't lagging demand
by scoofy 3y ago
>Lagging demand some amount is probably the easiest way to optimize this.
I actually agree with this to some extent. The point is that we aren't lagging demand from $300K/unit to $400K/unit in dense areas. We've been lagging urban demand for literally 40 years (hell, "developers" were literally a popular villain archetype in media in the 80s-90s), so that we're at $1.5M/unit in some areas with $300K in construction cost and labor.
Because of this, at this point, the profit incentive is so high, that we have local governments trying to extract significant amounts of these profits. This means instead of providing the financial resources to ramp up production capacity, we're actually just disincentivizing production in general.