[joshlemer]

Exactly! And also the rest of the benefits of speculation apply to housing just as much as anything https://en.wikipedia.org/wiki/Speculation#Economic_benefits

Namely, real estate investors provide liquidity to the market, bringing price stability and absorbing risk from developers and homeowners.

[eric-hu]

From that same section, though:

> On the other hand, as more speculators participate in a market, underlying real demand and supply can diminish compared to trading volume, and prices may become distorted.[8]

[noduerme]

Note that I said "properly regulated and harnessed". The creation of bubbles is a temptation for both speculators and governments.

Specifically, derivatives and futures based on real estate should be treated by governments as toxic / illegal speculation. In fact, banning bad money from bubble-making practices amplifies the incentive for small landlords to improve and build living space on property.

[eric-hu]

Yup. Your comment seemed to present advantages of speculation without saying it’s a pure good. The comment I replied to seemed more pure market.