4 ms·
Yeah, and property is a positional good. Its price is a function purely of willingness to pay. So if you double household income, and perhaps quadruple theoreti
by Earw0rm 2y ago
Yeah, and property is a positional good. Its price is a function purely of willingness to pay. So if you double household income, and perhaps quadruple theoretical discretionary income (after food, energy, gas and so on), give it 40 years and real-estate inflation eats the damn lot.
- sir0010010 2y agoThe price of every good and service is a function both of willingness to pay and supply. Positional goods cease to be so if you substantially increase their supply - this is why Rolex, Gucci, etc are constantly worried about knockoffs.
- Earw0rm 2y agoYes, if you can substantially increase supply in the top decile or quartile, in terms of desirability. That's difficult, for all sorts of reasons. NIMBYs protecting their investment is one aspect, but the maths of density, transport infrastructure and travel times is another big deal. Walkable, interesting downtowns AND big floorplans AND low taxes AND abundant supply within a short travel time is a tough set of constraints.