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Existing built home prices will go up if construction doesn’t keep up with demand, which has been the case for some time. Why is housing exempt from normal supp

by api 1y ago

Existing built home prices will go up if construction doesn’t keep up with demand, which has been the case for some time. Why is housing exempt from normal supply and demand? We do not have to ruin the world or kick women out of the work force. What we need is the same kind of price deflation that happened for appliances and manufactured goods to happen with housing. Of course the finite land supply probably makes price reductions that extreme unachievable but we could certainly make prices a lot more reasonable by density and taking the brakes off building. It would also create a bunch of construction jobs.

ndsipa_pomu 1y ago
> Why is housing exempt from normal supply and demand? Most people feel the need to live in a house, so the demand is not going to diminish when the supply is low. Also, the land that housing requires is a fixed size resource, so is often seen as a good investment which means that over-supply of housing usually results in it being purchased by the wealthy and then used to generate rent income from the less wealthy.