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Cav_vaC t1_itxn55k wrote

There's not an endless supply of people willing and able to pay current rates. That's just nonsense. There is a large supply, which is different. There are a lot of people making and buying wheat or oil in the world, but the price still goes down if supply increases.

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1minuteman12 t1_itxte8f wrote

The price of grain or oil doesn’t drop if the supply only increases marginally and that increase still doesn’t meet or exceed demand. That is especially true if grain and oil sellers decide that long term profits will be higher if they set a price based on the current market and hold or let spoil some of the product that doesn’t sell, while making fewer sales at a higher price point. People in here learned supply and demand in high school and just regurgitate that term as if it will cause some magic fix. There are literal studies and theories widely accepted in macroeconomic circles that argue capitalist society has moved beyond supply and demand based concepts for staple goods such as housing, food, etc.

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IntelligentCicada363 t1_itzddaw wrote

And yet, here we are living in a region with artificially constrained housing supply with incredibly high demand for that housing. Sounds like “high school economics” to me.

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1minuteman12 t1_itzfs3r wrote

No that’s late stage capitalism, which is significantly worse

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Cav_vaC t1_iu18vrv wrote

There are a ton of studies showing the also obvious truth that more market rate housing reduces rents (compared to what they would have otherwise been).

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