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I mean, if there's restricted supply/excess demand then the ones at the margin moving the point where supply and demand cross will the ones willing to pay high
by VHRanger 2y ago
I mean, if there's restricted supply/excess demand then the ones at the margin moving the point where supply and demand cross will the ones willing to pay high prices.
It shouldn't surprise anyone who took econ 101 that new builds are appealing to the ones at the margin of buying or not buying, and that those people are way above the median income right now.
- steveBK123 2y agoFair point
- mixmastamyk 2y agoYes, as long as there’s a shortage of housing no one is going to build “utility” (read low-profit) housing when you could build high-profit “luxury” housing. Imagine you have a development company that is restricted to building one building a year instead of five—what would you build? The kind that makes you money. People forget each project is risky for the builder. Even mid-profit is selected against in an intense shortage.
- steveBK123 2y agoRight so the core of the problem is not enough new development, a lot of which is nimbyism.