Re:Landlord Tech Watch – What Is Landlord Tech?
by clairity on Tuesday September 15, 2020 @01:45PM
(#24484229)
markets are neat mechanisms, but no market exists in a sociopolitical vaccum, so such blind faith in them is misguided (to put it charitably).
without getting too far into the weeds, and because housing is a durable and necessary good that's proportional to both population and productive capacity, in a free and fair market you'd expect housing prices to track with inflation. that's the reasonable expectation. over time, we've seen housing prices detach from that baseline for a variety of reasons unrelated to its core responsibility of sheltering people. see, for instance, the case-shiller index.
those detachments are distortions to the idealization of a free and fair market to ensure house prices continually rise for political and personal gain, despite the lack of sound economic principles underlying that distended rise.
without getting too far into the weeds, and because housing is a durable and necessary good that's proportional to both population and productive capacity, in a free and fair market you'd expect housing prices to track with inflation. that's the reasonable expectation. over time, we've seen housing prices detach from that baseline for a variety of reasons unrelated to its core responsibility of sheltering people. see, for instance, the case-shiller index.
those detachments are distortions to the idealization of a free and fair market to ensure house prices continually rise for political and personal gain, despite the lack of sound economic principles underlying that distended rise.