Where did you hear that house prices are expensive because the "earth is full"? Did you notice that housing prices doubled and almost tripled in the last 4 years alone?
If I recall correctly, what's happening here is that a property is valued at a particular level based on the rent, and the owner can borrow against that to make other investments. Demand drops, and lower rents would affect the valuation of the property, the owner wouldn't be eligible to borrow as much against it any more and may not have the liquidity to readjust things. So it's more profitable and secure to keep the rents at a higher, but vacant, level. It kind of suggests the solution here is more regular and rigorous revaluations of property, or limits on how much it can be leveraged.
Vacancy in areas where people want to live are historically low.
Bad valuation in contracts doesn't change the big picture. (As it mostly affects office buildings.)
Urbanization is ongoing for hundreds of years (and got absolutely turbocharged since agriculture productivity skyrocketed), but a sufficiently high number of incumbents/voters in cities don't want their city to densify, so they have the resources to block most effective redevelopments.
States, governments, politics mostly managed this by providing more cheap loans/mortgages, and mostly by ignoring the problem, or even by not even believing that the demand is real. (Remember when housing was called a bubble because prices were rising too fast? Yeah, prices are much higher.)
A very significant portion of young people's economic output is basically converted into spending a lot of money on shitty inefficient and extremely uneconomic housing and its consequences. (More and more and more .. and more suburbs, roads, cars, etc.)
gyudin|1 year ago
somnic|1 year ago
pas|1 year ago
Bad valuation in contracts doesn't change the big picture. (As it mostly affects office buildings.)
Urbanization is ongoing for hundreds of years (and got absolutely turbocharged since agriculture productivity skyrocketed), but a sufficiently high number of incumbents/voters in cities don't want their city to densify, so they have the resources to block most effective redevelopments.
States, governments, politics mostly managed this by providing more cheap loans/mortgages, and mostly by ignoring the problem, or even by not even believing that the demand is real. (Remember when housing was called a bubble because prices were rising too fast? Yeah, prices are much higher.)
A very significant portion of young people's economic output is basically converted into spending a lot of money on shitty inefficient and extremely uneconomic housing and its consequences. (More and more and more .. and more suburbs, roads, cars, etc.)