Comment by boxed
2 hours ago
> You bring down price of home land rent then price of everything else comes down
If any price for any reason goes down, that money ends up in housing. The only way to bring down housing pricing is to build more housing. This is extremely well documented.
And it's economics 101. The price is the symptom. The root cause is a shortage. Fix the shortage and the symptom follows. Try to fix the symptom and the root cause will make things worse.
Or decrease the demand/population. Which seems to be something we're bareling towards regardless.
I feel like the inflation of everything except wages will eventually show up in housing prices. People pay so much for existence, there’s not the same budget for housing. There’s only so much people can afford and also there’s now been a long track record of young generations having stunted starts.
Also not sure how the supply will be affected by boomers exiting the market. I know there will be no surge in supply, but I’m not certain there’s enough buyers at the prices they would expect. If that’s the case, supply will build and prices will drop.