Re:The Housing Market in San Francisco and Ideas to Fix It
by BurningFrog on Thursday April 07, 2016 @03:49PM
(#11450078)
Well, a mansion should be able to house more people than a shack, so it would increase supply more, and pressure prices down more.
New housing would start off being expensive because all housing in SF is expensive. Not the other way around.
Maybe the root of this fallacy is that it assumes prices are constant. If you build something today and charge $5k/month for it, that's how it will somehow remain forever. But in reality prices are set by supply and demand, for both new and old housing.
New housing would start off being expensive because all housing in SF is expensive. Not the other way around.
Maybe the root of this fallacy is that it assumes prices are constant. If you build something today and charge $5k/month for it, that's how it will somehow remain forever. But in reality prices are set by supply and demand, for both new and old housing.