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> A 5% increase in supply annually indefinitely would crash the housing market there Only if population is held constant. Housing supply is inelastic, but hou
by caseyohara 1y ago
> A 5% increase in supply annually indefinitely would crash the housing market there
Only if population is held constant.
Housing supply is inelastic, but housing demand is somewhat elastic. As seen in Denver, an increase in housing supply would decrease prices. But those lower prices will increase demand from people that want to live in Denver but previously couldn’t afford it.
- mattmaroon 1y agoI think you missed my point. It won’t increase it to 5% because that’s basically an unheard of population level increase for a big city/metro. It’s like 5x your average fast growing big city. You may induce some demand, it will be nowhere near that much.