Glut of global capital drives up property prices. Builders respond by building more. The price trend could eventually (well will given long enough) turn around, but I wouldn't hold my breath. For one thing, it is stated US government policy that housing prices should go up every year. So whatever they have to do to ensure that, they try. This is juxtaposed with the stated goal of seemingly every municipality to restrict the housing supply. The limit where people actually want to live isn't demand; it's regulation. People may be willing to live in, or only able to afford, a 1BR apt with no parking, but the city requires that you build 3BR houses with a driveway (in the areas where people actually want to live.) Shit, in California they dont' let you build anything due supposedly to water.
People can always own multiple properties. There's not really "too much" of it. Rather, there's not as much as people want. Like, that could change, but it's a rare event that housing goes down, and it turns around quickly. This demographic shows nothing about the number of children who will age into property buying age nor about those yet to be born.
bonghits4jeebus 0 points 2.2 years ago
Glut of global capital drives up property prices. Builders respond by building more. The price trend could eventually (well will given long enough) turn around, but I wouldn't hold my breath. For one thing, it is stated US government policy that housing prices should go up every year. So whatever they have to do to ensure that, they try. This is juxtaposed with the stated goal of seemingly every municipality to restrict the housing supply. The limit where people actually want to live isn't demand; it's regulation. People may be willing to live in, or only able to afford, a 1BR apt with no parking, but the city requires that you build 3BR houses with a driveway (in the areas where people actually want to live.) Shit, in California they dont' let you build anything due supposedly to water.
People can always own multiple properties. There's not really "too much" of it. Rather, there's not as much as people want. Like, that could change, but it's a rare event that housing goes down, and it turns around quickly. This demographic shows nothing about the number of children who will age into property buying age nor about those yet to be born.