3 ms·
> Shenzhen grew from 100,000 people in the 1980s to 13M now with no housing affordability crisis...by building. I wouldn't use China as an example of solving t
by IKantRead 3y ago
> Shenzhen grew from 100,000 people in the 1980s to 13M now with no housing affordability crisis...by building.
I wouldn't use China as an example of solving the housing problem by simply building. There's currently a large oversupply problem [0] and, not entirely unlike the US (but more extreme), excess supply of housing has lead to people simply owning more than one property as an investment strategy.
0. https://www.wsj.com/articles/chinas-smaller-cities-struggle-to-unload-empty-apartments-1a70f551 https://www.wsj.com/articles/chinas-smaller-cities-struggle-...
- anthonypasq 3y agoyeah thats because the building was centrally planned, which is always a worse choice than just allowing the market to work itself out. It doesnt detract from the mind numbingly obvious statement that increasing supply decreases prices.
- prewett 3y agoIncreasing supply doesn't necessarily decrease prices. Increasing supply above demand is required for prices to decrease. Unrelated to the above, but China's excessive building isn't actually from central planning, but because real estate is the one of the only viable investment methods in China, and because selling land to developers is one of the only ways local governments can raise revenue. Chinese cities are quite expensive to live in (especially if you have Western standards)
- somewhereoutth 3y ago> mind numbingly obvious statement that increasing supply decreases prices Only in idealised markets. Housing markets are often not like that.
- anthonypasq 3y agocan you explain how and when this wasnt the case barring regulatory interference?