← Back to context

Comment by zeroonetwothree

1 day ago

Clearly it’s not true that “no one” could afford to live there. And if demand was low then the housing would become more affordable

No one can truly afford to live there, if you price in the cost of insurance. The only reason people live there is because they haven't hit the 1/100 chance yet.

  • There are plenty of very rich people living there who can afford the house burning down every single year. So false.

    • Afford doesn't mean you can technically throw money out the window. At some point, you are going to give up if the risk is high enough to have >2 events in your lifetime - time is also a cost to factor in, as well as loss of possessions. It's not quite that simple.