Housing is notoriously inelastic. If you assumed a strict rule of 1 person to a bedroom, you can theoretically get wild price swings around the zone where the n

Housing is notoriously inelastic. If you assumed a strict rule of 1 person to a bedroom, you can theoretically get wild price swings around the zone where the number of people in a neighborhood is about the same as the number of bedrooms. You don't need to go crazy with oversupply at all to get the correct prices. Look at much of Texas today or at the rest of the country pre-1970 to see what a healthy housing market looks like. I'm sorry, but I have no tears left for those who participated in the pyramid scheme, claiming ignorance or that their peers were doing it too. If their investments bottom out, they usually have enough political clout to screw the taxpayer anyways (see 2008.) We need to fix the market once and keep it fixed. We should bring it back to where it should have been all along. If there are people who have valid claims after that, we can always use some of the humongous "peace dividends" to settle them.