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Developers build houses so that they can sell them, and use the proceeds to build the next house.

• chongli 3y ago
  Houses aren't being built. We've had a huge reduction in construction essentially since 2008. This is why the scalper analogy fits: it's a largely fixed supply with skyrocketing demand and investors see it as a gold rush.
  • amadeuspagel 3y ago
    > Houses aren't being built. OK, that's the problem then. If enough houses were built there would be no speculation either, just as there's no speculation in cars.
    • mantas 3y ago
      The problem with houses is if you just build - it won't solve anything. They have to be built in desirable locations. But then you've to either replace existing buildings in there. Or you need to extend commuting infrastructure. And in either case you need to build/upgrade social infrastructure. Including workforce for it.