Re:Supply Constraints Do Not Explain House Price, Quantity G...
by chii on Thursday March 20, 2025 @12:25AM
(#43419897)
> you can't use it
you can't "consume" the wealth. But you can use it by leverage into loans, which can be invested elsewhere to make more money.
And if you owned more than 1 property, rental income is an additional vector.
The wealth isn't imaginary. It's just illiquid.
Well, the thing there is, that wealth doesn't really exist for most people. Housing "wealth" in the US is basically imaginary because you can't use it without moving somewhere else, and everywhere else is equally expensive!