Hold That Thought On Good Old Supply & Demand Theory

Well duh, they’re only adding 5% supply to cities that already have a huge shortage. Another way to look it would be a city’s vacancy rate vs. rent increase. There’s a tipping point where vacancy is high enough rents decline. You’d need to build enough housing to the point you materially increase the vacancy rate to lower rents. That’d very difficult to due given the time to plan, permit, build, etc. Builders aren’t going to spend tons of money building homes for demand that might happen in the future. We’re stuck with home construction always lagging need by a pretty significant amount. The only areas that’ll see home prices decline are areas that see population decline.

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The nimbyies would perfer a plague or maybe nuclear war:sunglasses:

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