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0 pointslotsofpulp4y ago0 comments

Housing prices are high because the supply of housing is very low relative to demand from people who have the ability to pay a high price.

If you took the same amount of high earners and dropped them in an area with five times as many equivalent utility houses, then prices would not be high even though there are the same number of high earners. Hence high housing prices are not a result of a population of high earners simply existing.

As an example, I can afford and am willing to pay $5 for an apple, but I will not because I can easily find an equivalent one for $1.5.

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coding1234y ago

Well that doesn't happen. High earners aren't "dumped" somewhere by some magical god that moves people around. There's often some reason a bunch of high earners are somewhere and when it happens the tap doesn't turn off. It just keeps going until there are no homes left. And at that point there's high pressure for low income people to sell because of the ability for them to get $1.5MM for their $200K house.

j / k navigate · click thread line to collapse

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coding1234y ago

j / k navigate · click thread line to collapse