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by mcv 336 days ago
Oh, come on, man. Read the sources he points to before you invent imaginary contradictions.

> The Phoenix housing market exploded briefly during the pandemic, when demand skyrocketed amid a housing supply shortage. Remote workers relocating to the relatively cheaper city brought up home prices and values. Between February 2020 and February 2025, home prices were up 53 percent in Phoenix and 56 percent statewide in Arizona, according to Zillow. During the same five years, prices grew by 45 percent nationally.

> But the city has been experiencing a price correction in recent years, as demand slowed significantly with return-to-office orders and buying properties in the city became unaffordable for many—especially locals. "There's a mass sell-off occurring, as pandemic investors and snowbirds sell out,"

Did you know that prices can vary over time? They can go up first, and down later. That's what the article is referring to.

> An increase in housing supply leads to a fall in prices, which leads to a fall in supply?

You mean basic free market reacting to a disruption and looking for a new balance? High prices make supply go up, high supply leads to more competition and lower prices. This is basic economics, man.

1 comments

The author says, increasing the supply pushes prices down which results in higher financial risks.

But then the author says we should also increase the supply… without addressing the underlying point that increasing supply creates financial instability

He addresses that in the article. In fact, it's the primary thing the article is about. Half the article is about the contradiction between housing as investment and housing as shelter.