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It is really simple. It is because humanity has decided that housing is an investment and investments need to grow faster than inflation or else they stop bein
by slg 3y ago
It is really simple. It is because humanity has decided that housing is an investment and investments need to grow faster than inflation or else they stop being good investments. Society now has a bias to ensure that the price perpetually grows and therefore we enact policy at every level from national governments to HOAs to ensure those investments keep growing.
- whimsicalism 3y agoSpeculating on price signals of housing is how you get housing in places to respond to demand. People are incentivized to figure out where people are going to move in a few years and build houses there to meet the demand when it arrives - rather than responding late.
- rickydroll 3y agohumanity didn't decide. A small portion of financial power structure decided it could monetize housing as an investment. The rest of us haven't figured out yet how to strip power from the financial elite.