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The economics of fixed resources, such as housing, are not directly vested in supply/demand ratios. As a proof the city where I live has gained about 80,000 new
by austin-cheney 2y ago
The economics of fixed resources, such as housing, are not directly vested in supply/demand ratios. As a proof the city where I live has gained about 80,000 new residents in the last 4.5 years. Supply cannot keep up with demand and its not effecting prices.
- scarab92 2y agoThis isn't about prices, it's about homelessness. When population is growing faster than housing times occupancy rate, then necessarily people are sleeping rough.
- austin-cheney 2y agoIts not clear if people are moving in faster than new housing can be built or if supply availability is artificially limiting speed of growth. Prices do matter, because that impacts inventory access more than any other factor and largely explains the desirability of this location, versus other locations, more than any other factor.
- scarab92 2y agoIn the long run yes, but Australia's problem is that migration has suddenly increased from about 250k pa to 600k pa, and our building industry simply can't keep up. Prices are spiking, but there isn't much supply response because Australia has low unemployment and few people are willing to switch careers, especially given it takes years of training to become qualified.
- lmpdev 2y agoIt has naturally dropped off again though as it was mostly a backlog of migrants from years with lower caps than what we ought to have had It is stabilising now and will return to normal levels