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Population growth isn't the only variable, there's also housing regulations and zoning that influence how much gets constructed. For example, if property taxes
by naasking 3y ago
Population growth isn't the only variable, there's also housing regulations and zoning that influence how much gets constructed. For example, if property taxes increased quadratically based on property size, then there would be a very strong incentive against mega mansions and towards denser housing.
- stephc_int13 3y agoThe housing market is complex and driven by many factors. But the main one, long-term, is population density. The regulations and zoning are side effects of the fact that the housing market is used as a stable investment, precisely because population growth as been so steady for many decades now. Ultimately, speculators and finance are acting as pricing agents, and they also skew the market to extract as much juice as possible from it. But in the end, the usefulness, and thus the value, of houses, is determined by the good old market rules, supply and demand, everything else is high-frequency noise, not the signal.