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by treis 2578 days ago
> 50% in value over the last ten years

That's only slightly ahead of the general inflation rate and might simply match the price increase in construction.

1 comments

Three points:

1/ inflation over ten years is roughly 19%. So 50% is not "slightly ahead" by any means.

2/ Residential construction cost per square foot seems like a stronger candidate, with a roughly 35% jump nationwide over that time period (remembering that this does not account for inflation). Accounting for inflation that's essentially half the price increase.

3/ Neither of these factors, if they fully explained the value increase, would support the claim that regulation is to blame.

>3/ Neither of these factors, if they fully explained the value increase, would support the claim that regulation is to blame.

The point is that the 50% increase is the baseline appreciation or in other words the increase due to everything but regulation. Things like natural inflation, construction costs, etc. A rate above that is likely due to supply being constrained by regulation (or at least that's what the GP argues).