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Think of it this way: Whenever residents in a sought-after area get cheaper computers, that means they have more money. Since everyone (also outside the area) g
by tormeh 12y ago
Think of it this way: Whenever residents in a sought-after area get cheaper computers, that means they have more money. Since everyone (also outside the area) gets more money that means they have more money to pay for housing. And voila! The prices of housing in the desired area rises and all savings are gone.
Since desirable land is a limited resource, it's' price will simply rise with people's ability to pay for it.
- sanderjd 12y agoI agree that the price of land is a tough nut to crack, but the cost of actually building stuff on that land could be reasonably expected to fall at a rate similar to the rate of other manufacturing. That it hasn't is, I think, largely because we build buildings right where they end up, so we can't take advantage of the efficiencies afforded by assembly lines and outsourced labor. This mostly seems like a good thing to me. The notable exception is trailer homes, for which the price of the land really does dominate the cost.