3 ms·
Demand is pretty inelastic when the alternative is being homeless. Seriously, housing is one of the least elastic markets out there. Everyone needs exactly one
by patmcguire 11y ago
Demand is pretty inelastic when the alternative is being homeless.
Seriously, housing is one of the least elastic markets out there. Everyone needs exactly one home, everything else is secondary.
- sokoloff 11y agoEveryone needs at least a portion of a home, not exactly one home. Families and roommates are obvious examples where housing units and people are not 1:1.
- teacup50 11y agoNo, the alternative is living somewhere else. This is obvious to anyone that has watched the rental and housing market in a city across economic boom/bust cycles: - Bust: Demand dries up from the beleaguered economic sector (e.g., tech in SF after .com crash, finance in NYC post-housing bubble crash). Prices drop. Demand rises, fast, with residents moving in from the boroughs/suburbs. - Boom: Demand is extremely high from the booming economic sector. Prices increase to match, unmet demand drops as those outside the boom sector move out to the boroughs/suburbs.