| ▲ | muyuu 6 hours ago |
| it's crazy that people nowadays seriously question basic market pressure being a thing |
|
| ▲ | varenc 6 hours ago | parent | next [-] |
| I'm with you, but many people still question this. Here's a recent pre-print paper that was in the news arguing that inequality, not lack of supply, is the real source of housing affordability: https://osf.io/preprints/socarxiv/95trz_v1 |
| |
| ▲ | rcpt 6 hours ago | parent [-] | | The black pill about that story isn't that a (crappy) preprint exists, it's that it got coverage in the press and was viral on social sites. | | |
|
|
| ▲ | datsci_est_2015 5 hours ago | parent | prev | next [-] |
| Who are the people that “seriously question basic market pressure being a thing”? Am I missing something? |
| |
| ▲ | terminalshort 5 hours ago | parent | next [-] | | Just look through the comments on any post about housing or immigration and you will see hordes of them. | |
| ▲ | CalRobert 2 hours ago | parent | prev | next [-] | | Every leftist European nimby party comes to mind. | |
| ▲ | ivewonyoung 5 hours ago | parent | prev [-] | | There was an article on HN front page a few months ago which stated(paraphrased) "building more housing to reduce prices is a right wing ideology that doesn't match reality" or some such. I'll reply here if I find it. | | |
| ▲ | datsci_est_2015 5 hours ago | parent [-] | | hn.algolia.com is a great search interface. I searched “housing” and top posts in the past year and didn’t see anything related to your quote on the first two pages. Maybe I need to search deeper. | | |
|
|
|
| ▲ | terminalshort 5 hours ago | parent | prev | next [-] |
| Housing and immigration are two areas where people just can't accept basic economics. You can see some olympic level mental gymnastics routines all over this comments section. |
|
| ▲ | lesuorac 6 hours ago | parent | prev [-] |
| Eh, people really need to be questioning econ 101 more often. It's built upon untrue assumptions - infinite buyers / sellers - perfect information - no switching / transaction costs --- The article itself has 3 different year ranges provided so I'm not sure how you can use it as evidence. Plus overall the rent is still up by a lot since 93% - 4% is still at least 80%. - Rents increase by 93% from 2010 to 2019 - Housing increase from 2015 to 2024 (this overlaps with when rents increased ...) - Rents fell from 2021 to 2026 by 4% |
| |
| ▲ | energy123 32 minutes ago | parent | next [-] | | First year economics models all these things, through behavioral economics, microeconomics and utility theory. It's the basics. | |
| ▲ | Qwertious 6 hours ago | parent | prev | next [-] | | Housing is also really weird: - the main input (land) is also an output, so when the price of the output goes up, so does the value of the input. - economies of scale don't really work, due to the impracticality of transporting the good (houses) and fitting the good inside a machine (in house "factories", normal workers go inside the house and work on it by hand; not a lot changes compared to traditional construction) - more supply in one area increases the value (and therefore demand) in that area, so it's not actually clear-cut whether building more would reduce the price more than it increases it, at first glance. | |
| ▲ | pembrook 6 hours ago | parent | prev [-] | | Ah yes, that 150 year old meme reflexively copy-pasta'd by internet commenters since the days of usenet to refute basic concepts like supply and demand. "Lol economists are dumb they think humans are robots!" No they don't. Sorry, we won't be throwing away an entire field of human endeavor based on a straw man caricature that isn't true. We don't call physicists dumb and throw out their ideas because the real world isn't a perfect vacuum either. They know this, don't be silly. |
|
