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A comment on Zillow to stop flipping homes, loses more than $550M, lays off 25% of staff. Parent comment

Re:Zillow to stop flipping homes, loses more than $550M, lay... by satellite2 on Wednesday November 03, 2021 @02:32AM (#29091657)
> home prices track construction costs

But construction costs track home price so this doesn't prevent an unbounded faster than inflation growth.

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Re:Zillow to stop flipping homes, loses more than $550M, lay... by rsj_hn on Wednesday November 03, 2021 @03:29AM (#29091978)
Yes, the correlation is not necessarily causation, but we can add some other data points -- for example the size of new construction has been steadily growing at roughly 2%, which does not suggest any kind of odd explosion in house size as a result of the price going up. Of course ultimately, ability to pay determines the price of housing and also house size.
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