Housing is not a normal rational market like a market for shoes, every ecobonist knows that much.
Housing supply cannot, and never could fix the problem. There is no city or country in the world where this has ever succeeded.
The house prices are rising because of increasing financialisation of our economy, cheap credit and low interest rates.
700,000 people left London during pandemic, put prices keep rising.
If we offered 300 year long mortgages that get passed on to your next of kin, house prices would quadruple overnight. The price of a house has no relationship to it's utility, like it does for all other goods. You know you will always be able to sell it for more to the bext sucker.
"False" is a hell of an elaborate argument, very convincing when placed against 50 years of data across 5 countries, all leading to same skyrocketing housing prices.
Nothing more needed to refute an argument of said quality. If I delivered one million finished apartments to your city anywhere in the world today, the average price would go down. How about ten or a hundred million? Q.E.D.
Housing scarcity is real, whether you believe it or not.
I'm really not sure that's true. I don't know exactly how many were built, but Melbourne (Australia) added a lot of CBD apartments and the price continued to shoot up.
Those were overwhelmingly tiny/cheap/low-quality/investor-bought apartments, but the fact is they were still there.
That there are places where foreign buyers outnumber locals ten to one, or other govt interference happens, do not refute basics of economics. Australian cities are tiny compared to Asia or even LA, and certainly units built were not in the millions.
i.e. if your locality has additional issues, the solution is to fix them. Don't use them as excuses to build less housing for folks that need it.
Housing supply cannot, and never could fix the problem. There is no city or country in the world where this has ever succeeded.
The house prices are rising because of increasing financialisation of our economy, cheap credit and low interest rates.
700,000 people left London during pandemic, put prices keep rising.
If we offered 300 year long mortgages that get passed on to your next of kin, house prices would quadruple overnight. The price of a house has no relationship to it's utility, like it does for all other goods. You know you will always be able to sell it for more to the bext sucker.