That's because, in the places where housing is expensive, it's expensive because a _LOT_ of people want to live there. It's a pipe dream that you can out build demand in these places. Reducing prices of housing in nice places to live (by any means, including building) will only result in more demand up until that insatiable demand is satisfied.
Nice places to live can't support all the people that want to live there.
Because demand is, for all intents and purposes, insatiable, the dollar value of housing/property isn't based on supply and demand because supply can't practically be increased to affect demand. Instead, the price is related to what a prospective buyer can afford to pay _every month_ and, thus, is related to interest rates. Interest rates go down, prices go up to the point where a prospective buyer's mortgage payment would be the same.
People who bring up the (un)affordability of housing are never talking about Oklahoma, they're talking about the Bay Area, Southern California, New York City, Seattle, Portland, etc. All places that are so desirable, they can't practically support everyone that wants to live there.
> it's expensive because a _LOT_ of people want to live there.
I can't figure out how to make the math make sense even if I were to build a house in the middle of nowhere. Time and materials is the real killer.
Some day, when AI eliminates software development as a career, maybe you will be able to hire those people to build you houses for next to nothing, but right now I don't think it matters where or how many you build. The only way the average Joe is going to be able to afford one — at least until population decline fixes the problem naturally — is for someone else to take a huge loss on construction. And, well, who is going to line up to do that?
parineum|17 days ago
Nice places to live can't support all the people that want to live there.
Because demand is, for all intents and purposes, insatiable, the dollar value of housing/property isn't based on supply and demand because supply can't practically be increased to affect demand. Instead, the price is related to what a prospective buyer can afford to pay _every month_ and, thus, is related to interest rates. Interest rates go down, prices go up to the point where a prospective buyer's mortgage payment would be the same.
People who bring up the (un)affordability of housing are never talking about Oklahoma, they're talking about the Bay Area, Southern California, New York City, Seattle, Portland, etc. All places that are so desirable, they can't practically support everyone that wants to live there.
9rx|17 days ago
I can't figure out how to make the math make sense even if I were to build a house in the middle of nowhere. Time and materials is the real killer.
Some day, when AI eliminates software development as a career, maybe you will be able to hire those people to build you houses for next to nothing, but right now I don't think it matters where or how many you build. The only way the average Joe is going to be able to afford one — at least until population decline fixes the problem naturally — is for someone else to take a huge loss on construction. And, well, who is going to line up to do that?