Re:US homelessness up 12% from 2022, hits highest level sinc...
by konschubert on Thursday December 21, 2023 @11:00AM
(#38722177)
Yes.
If prices go up because demand is high and supply is low, then the way to fix this is by increasing supply.
If you cap the prices, supply will be even lower and you get shortages.
A pricing problem is when you have sufficient supply, but the sellers in the market are colluding to fix high prices. This can be fixed by trust breaking and/or price controls, but this isn't what's happening in real estate. Real estate is an extremely competitive market.
If prices go up because demand is high and supply is low, then the way to fix this is by increasing supply.
If you cap the prices, supply will be even lower and you get shortages.
A pricing problem is when you have sufficient supply, but the sellers in the market are colluding to fix high prices. This can be fixed by trust breaking and/or price controls, but this isn't what's happening in real estate. Real estate is an extremely competitive market.