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Supply constraints don't explain housing prices: https://www.nber.org/papers/w33576 https://www.nber.org/papers/w33576 Land prices rise with income. Through al
by sorcerer-mar 1y ago
Supply constraints don't explain housing prices: https://www.nber.org/papers/w33576 https://www.nber.org/papers/w33576
Land prices rise with income. Through all places in all points of history.
The solution is a land value tax.
- greenie_beans 1y agoupvoted then realized you are promoting LVT. this is why i think LVT is a terrible idea: https://news.ycombinator.com/item?id=44532444 https://news.ycombinator.com/item?id=44532444 land value is only a small part of housing costs.
- sorcerer-mar 1y agoI don't think you understand LVT based on this "not to mention the political debates/decisions over what constitutes "fully utilized"." LVT doesn't require any such determination. Anyway, I'm not opposed to the solution you mention as well. We should subsidize supply of housing, and supply at any price will serve the same purpose of driving prices down, so yes I agree we should build public housing for higher price points.
- greenie_beans 1y ago[dead]
- HDThoreaun 1y agoLand prices rise with income but housing constraints mean each family needs more land. Just look at the rental market in austin collapsing 20% while incomes continue to rise to empirically falsify your working paper.