One Pundit's Take On What Moves Real Estate

Thus macro analysis doesn’t tell the real story of the BA RE market…Steady rising demand and increasing resticted supply…Population has doubled since 1972, with a shortfall in supply ever since due to government interference. …

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That pundit’s take reads like nonsense to me. And he himself said he cannot account for a solid 2 decades of growth based on his theory.

Plus, real estate is not a uniform national market like gold or stocks. It’s made up of thousands upon thousands of local markets, each with its quirks. The only common themes are federal monetary and regulatory policies. Then it’s up to local demand and supply constraints.

“What really drives house prices?”

The same thing that drives any price: Demand and supply.

Geez this guy is no economist.