3 ms·

Over-construction is not uncommon during boom times. It's not a problem either: the buildings may be empty temporarily, but once prices adjust, they will be occ

by rchaud 2y ago

Over-construction is not uncommon during boom times. It's not a problem either: the buildings may be empty temporarily, but once prices adjust, they will be occupied and in use. China needs new cities to distribute their population more evenly geographically, so some level of over-capacity is planned for. Contrast that to the US, where housing economics are completely messed up due to zoning restrictions, Airbnb-only properties, immigration crackdowns causing labour shortages, and a system that allows cash-rich investment funds to hoard large amount of the supply.

JumpCrisscross 2y ago
> the buildings may be empty temporarily, but once prices adjust, they will be occupied and in use With what population? Like, there is a reason these structures are being left unfinished: they were never smart to have started. > zoning restrictions, Airbnb-only properties, immigration crackdowns causing labour shortages China is heavily zoned, has a prominent issue in its cities with the rich “hoarding” property as investment, and is notoriously immigrant unfriendly. (We haven’t even gotten to hukou.) China’s system excels in one respect when it comes to housing and construction: efficient use of public lands and eminent domain to overcome NIMBYism. > cash-rich investment funds to hoard large amount of the supply By which “large” means considerably less than 1% [1]. You have a good argument. It doesn’t need hyperbole or falsehoods. [1] https://www.housingwire.com/articles/no-wall-street-investors-havent-bought-44-of-homes-this-year/ https://www.housingwire.com/articles/no-wall-street-investor...
robocat 2y ago
It isn't sensible to project your personal intuitions about the US onto China. China keeps surprising us (in different directions). > the buildings may be empty temporarily If they are quality buildings in a useful location then they might become useful.

by rchaud 2y ago

JumpCrisscross 2y ago

> the buildings may be empty temporarily, but once prices adjust, they will be occupied and in use With what population? Like, there is a reason these structures are being left unfinished: they were never smart to have started. > zoning restrictions, Airbnb-only properties, immigration crackdowns causing labour shortages China is heavily zoned, has a prominent issue in its cities with the rich “hoarding” property as investment, and is notoriously immigrant unfriendly. (We haven’t even gotten to hukou.) China’s system excels in one respect when it comes to housing and construction: efficient use of public lands and eminent domain to overcome NIMBYism. > cash-rich investment funds to hoard large amount of the supply By which “large” means considerably less than 1% [1]. You have a good argument. It doesn’t need hyperbole or falsehoods. [1] https://www.housingwire.com/articles/no-wall-street-investors-havent-bought-44-of-homes-this-year/ https://www.housingwire.com/articles/no-wall-street-investor...

robocat 2y ago

It isn't sensible to project your personal intuitions about the US onto China. China keeps surprising us (in different directions). > the buildings may be empty temporarily If they are quality buildings in a useful location then they might become useful.