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by TipVFL
2923 days ago
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"Inside these restaurants, it’s evident that the forces making this one of the most expensive cities in America are subtly altering the economics of everything. Commercial rents have gone up. Labor costs have soared. And restaurant workers, many of them priced out by the expense of housing, have been moving away." I feel like so much of this could be fixed if we had a highly regulated housing market, with a goal of affordable housing for everyone. It's hard to imagine that this housing bubble can last much longer, it's distorting everything to such an extreme already. The cost of housing doesn't have to keep increasing, just look at Germany:
https://www.forbes.com/sites/eamonnfingleton/2014/02/02/in-w... |
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The former has a terrible track record of leading to the latter, particularly in America (where housing is treated as a proxy for savings).
Regarding Germany: "During the current real-estate cycle, i.e., from 2009 to 2017, house prices have risen 80% in large metropolitan areas (A cities) and c. 60% in B and C cities. In 2017, the number of newly completed residential units looks likely to have risen to more than 300,000 for the first time in the current cycle; in 2018, it might climb to 335,000. However, assuming that there is demand for at least 350,000 new apartments, the gap between supply and demand should continue to widen in both years. As demand remains high, upward price pressure will continue. This suggests that prices and rents will rise further in all major cities. Overvaluations are rising, and the risk of a price bubble on the German housing market is increasing. The price uptrend is likely to continue for several years to come, at least in most major cities in Germany" [1].
[1] https://www.dbresearch.com/PROD/RPS_EN-PROD/PROD000000000046...