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by stephc_int13
303 days ago
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The housing market is different than most markets in many ways. - Building cost is often marginal compared to land. - Land value is highly correlated to economic opportunities around it. - Economic opportunities are following a power law around economic centers (highly non-linear). - There is a density ceiling, with some variations depending on cultural traditions but still constrained by transportation technologies and psychological factors. - The location of economic centers is not randomly distributed but constrained by geography, especially access to water transportation routes. Financial speculation and building restrictions are second orders effects of the inherent housing scarcity, amplifying it, but not a root cause. |
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