4 ms·
> I’ll just rent until the price bottoms out Rent what inventory? If everyone wants to rent the monthly rent goes up until the market reaches equilibrium. Once
by polygamous_bat 3y ago
> I’ll just rent until the price bottoms out
Rent what inventory? If everyone wants to rent the monthly rent goes up until the market reaches equilibrium. Once again, look at cars. Do you see a majority of the people renting cars because "prices will be lower for the same model next year"?
- mortureb 3y agoNot if the government keeps building new housing like this article is mentioning. There will always be supply. Like I mentioned in another comment it’s different if the housing is being built simultaneously nationwide, like Japan, then people don’t have an option. That represents a nationwide shift in mentality where housing is no longer an investment. Cars are pretty evenly priced across the nation (within a few thousand) so people don’t have an alternative. But that’s not the case here.
- avmich 3y ago> Not if the government keeps building new housing like this article is mentioning. There will always be supply. The speed of building is limited and may be below demand. Often in conclusions like this a particular trend is getting extrapolated outside of the applicability region, becoming invalid.