3 ms·

There are several factors in play in the US that put pressure on existing long-term residents. - Rural/suburban -> city migration - Immigration of wealthy peo

There are several factors in play in the US that put pressure on existing long-term residents. - Rural/suburban -> city migration - Immigration of wealthy people from all over the world to the US. California is an obvious and frequent destination for Pacific Rim peoples. - REITs and other large investors snapping-up real estate only to idle it or rent it out at a premium. - Zoning restrictions - Massive open space preserves immediately adjacent to suburban and residential areas, blocking usable land for growth - Lack of efficient, convenient, high speed public transit: CalTrain and VTA Light Rail are largely inconvenient for all but a small fraction of people. Faster, more efficient public transit allows housing to be more spread out. California has been promising high speed rail about as long as the flying car and fusion power have been "just around the corner". There is another factor for older residents in California dissuading them from moving: losing Prop 13. Another worrisome trend in US is the numbers of giant SUVs replacing mid-sized passenger cars. Vehicles that are heavier, less safe to pedestrians, less safe to drive, and less safe for occupants in a collision because they don't have to meet passenger car standards.

rich_sasha 3y ago
Yes, there are many factors. What I couldn't understand (and what I think my "brainwave" explains) is why excess demand barely moves the needle of supply. Usually if something is in short supply, it becomes more and more economical to produce it and sell it - increasing supply and decreasing prices. Some of the factors you list decrease supply, but to me, the elephant in the room is that we don't seem to be able to create new cities - thus we're all competing for a fixed, small supply of land near the centres of a handful of high-status cities. Different zoning, REITs and public transport are factors too, but these are merely resistors in the circuit, not switches IMHO.

rich_sasha 3y ago

Yes, there are many factors. What I couldn't understand (and what I think my "brainwave" explains) is why excess demand barely moves the needle of supply. Usually if something is in short supply, it becomes more and more economical to produce it and sell it - increasing supply and decreasing prices. Some of the factors you list decrease supply, but to me, the elephant in the room is that we don't seem to be able to create new cities - thus we're all competing for a fixed, small supply of land near the centres of a handful of high-status cities. Different zoning, REITs and public transport are factors too, but these are merely resistors in the circuit, not switches IMHO.