Re:US home prices surge 17% in May, fastest in 17 years
by epistasis on Wednesday July 28, 2021 @08:09PM
(#27991303)
All this is premised on a housing shortage. Without that housing shortage, there is no long-term positive return on investment.
There is not infinite demand even when housing is a guaranteed positive investment, because there's limited money and capital.
We have let people think that housing is always a positive return investment, instead of a bank account. And to do that, we have limited home building in the in-demand areas.
The actual way this is enforced is by home owners restricting development in their neighborhoods, a trend that is likely to continue.
Read the prospectus' of the private equity investments in residential housing and you'll see they are saying the same thing.
There is not infinite demand even when housing is a guaranteed positive investment, because there's limited money and capital.
We have let people think that housing is always a positive return investment, instead of a bank account. And to do that, we have limited home building in the in-demand areas.
The actual way this is enforced is by home owners restricting development in their neighborhoods, a trend that is likely to continue.
Read the prospectus' of the private equity investments in residential housing and you'll see they are saying the same thing.