Quote:
Originally Posted by Traum
All of this seems very odd. If housing supply is larger than the number of new households, why are prices still soaring?
And the good doctor doesn't explain any of that.  |
As westopher pointed out, we dont have a shortage of housing supply, we have a shortage of affordable housing supply that doesnt correlate with the average household income.
Im assuming most of them are being bought by foreigners who didnt earn their money here, not subject to the same taxes most of us pay, and see it as a safe place to park their money and generate stable returns. Thus pretty much snatching up all the supply, even though prices are ridiculous in our eyes, its most likely a cheap safe option just to get the money out of their home country.
Meanwhile locals are getting antsy, seeing everything being bought up, want to make sure they are able to own also (buy now or never mentality), drive up the demand some more and gobble everything that's available.
Developers are laughing to the bank as people will pretty much buy up anything, deficiencies or not. They can set whatever price they want and people will still purchase