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Demand for housing is not entirely inelastic. People downsize, move cities, move in with roommates/family, etc. It’s not rapidly responsive like subscribers of
by Gigachad 2y ago
Demand for housing is not entirely inelastic. People downsize, move cities, move in with roommates/family, etc.
It’s not rapidly responsive like subscribers of netflix, but it’s fairly elastic over the long term.
- chimpanzee 2y agoI agree. It is definitely not perfectly inelastic. But for the sake of pushing back against this claim by gp: >> If tenants are still moving inspite of the high prices, then the price is probably right. it’d probably be best to focus on housing’s relative inelasticity as compared to other goods where such a claim might actually be quite true.