Re:Ask HN: when will property prices go back up?
by anamax on Monday March 23, 2009 @10:40AM
(#528596)
> Supply-side policies are necessary here in order to bring down materials costs and to continue to build more housing to bring prices down.
In a large number of places, housing prices are not all that dependent on materials costs. (Or rather, other things drive up the price to the point that people spend more on materials because that doesn't have much effect on the overall price.) Instead, they're driven by land use and other policies.
> Housing is not an investment, it should never be treated as an investment.
Housing is a large pile of resources. While it's a durable good for consumers, it's an investment for housing providers, builders, and so on.
More to the point, things that people do for profit are far more likely to happen than things that people do "for the common good" or some other reason. And the desire for profit is what drives prices down.
In a large number of places, housing prices are not all that dependent on materials costs. (Or rather, other things drive up the price to the point that people spend more on materials because that doesn't have much effect on the overall price.) Instead, they're driven by land use and other policies.
> Housing is not an investment, it should never be treated as an investment.
Housing is a large pile of resources. While it's a durable good for consumers, it's an investment for housing providers, builders, and so on.
More to the point, things that people do for profit are far more likely to happen than things that people do "for the common good" or some other reason. And the desire for profit is what drives prices down.
Investment is a great way to get profit involved.