Housing costs

[danbrotherston]

I mean this is a long scenario, but I fundamentally disagree with your base assumption, that in today's market there is any housing whatsoever that couldn't be built if the selling prices were lower.

You do understand my assumptions are suppositions for an example meant to illustrate a very specific point, specifically, that lower prices don’t necessarily improve the ability of people to obtain housing?

I don’t believe that a tiny decrease in housing prices would bring construction to a halt in the real world. On the margin maybe some tiny number of projects would be cancelled or deferred, but not anything really noticeable.

Fundamentally I think the problem with the housing market is not the actual cost of constructing housing, but the profit that is being generated from doing so and the regulations which limit who can build and where.

I have no love for the taxi industry...but frankly, I dislike Uber more--but that's another discussion.

The profit is not a problem in itself; it’s more of a symptom. If large profits are possible it’s probably because it’s too hard to build, meaning that only those who can navigate the system are able to build.

No, sorry, I didn't understand that...I took your statement to be an expression of belief about the actual situation, my mistake.

I think some profit is just fine, but property owners and developers aren't earning *some* profit. I'm not sure how profits interact with regulations and NIMBYism, I believe you are right that restrictions on building make it more profitable for those who do, but I don't think it is not the only factor. To some degree it is self-reinforcing, realestate is going up because there is huge investment in realestate specifically because realestate is going up.