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Wealthier people moving to an area is an increase in demand which will make prices increase. The market has then done exactly what it is supposed to.
by throwaway545673 2y ago
Wealthier people moving to an area is an increase in demand which will make prices increase. The market has then done exactly what it is supposed to.
- vannevar 2y agoProbably better to say "expected to" rather than "supposed to". The problem is that income growth is not evenly distributed across the income curve, but instead increases up the curve. So the net effect is that fewer and fewer high income entities own a greater and greater proportion of the housing, and lower income levels are increasingly forced to rent, or---at the extreme lower levels--go without housing. As a matter of public policy, this is not what we want to happen, though I'd agree it is what we should expect given current policies.