Comment by cool_dude85
2 years ago
How is your market for an essential commodity working if we need to have more than 6% of all inventory sitting around doing nothing, or else it's unaffordable?
2 years ago
How is your market for an essential commodity working if we need to have more than 6% of all inventory sitting around doing nothing, or else it's unaffordable?
Let's say you had a 0% vacancy rate in an area. All housing units are full. Now let's say you want to move to that area, or you're a young adult moving out of your parents' house. How do you do it?
If this doesn't seem reasonable to you, what vacancy rate would you find acceptable?
> How do you do it?
Just for argument's sake, it can be done: Renters are supposed to give notice months in advance, so landlords can advertise during that time. (And yes, painting etc takes some time, but not that much.)
if a property is empty for one month every two years, that's a 4.2% vacancy rate. That seems plenty reasonable - places need to be cleaned between tenancies, sometimes refurbished.
Easy. Housing is not a commodity.
The. What is it? A right? What does that mean? I have a right to speech in the US. The government doesn’t provide me a laptop and hosting. I have a right to keep arms. The government doesn’t give me a Ruger.
Definition of a commodity. In economics, a commodity is defined as a tangible good that can be bought and sold or exchanged for products of similar value. Natural resources such as oil as well as basic foods like corn are two common types of commodities. Like other classes of assets such as stocks, commodities have value and can be traded on open markets. And like other assets, commodities can fluctuate in price according to supply and demand.
Housing does not meet any of the criteria to be a commodity. Commodities are undifferentiated bulk products widely available from many sources in which profits are minimal. Housing by contrast is completely unique owing to its location. Housing cannot be transported. Housing is not an easily substituted good. Sorghum is a commodity. The house at the corner of Grand and Lake is not a commodity.