objectimpermanence t1_j9qceep wrote on February 23, 2023 at 8:34 PM

Reply to comment by DirectorBeneficial48 in Want to know why NY metro housing is expensive? Answer in NYTimes OP-ED by Blecher_onthe_Hudson

You are the one who is arguing that the basic rules of supply and demand somehow don't apply to the housing market.

I work in finance. My work touches the real estate industry pretty closely. I know for a fact that certain people and institutions have made a ton of money because they identified the supply-demand imbalance in the housing market and figured out how to exploit it to their benefit.

I have been in meetings with housing strategists and investment professionals at large institutional investment firms. If I told them that there is zero correlation between housing supply and housing prices, I would be laughed out of the room. These are people who spend their days analyzing a dizzying array of data about the housing market.

I am not saying that the conclusions of these people are 100% accurate 100% of the time, but there is an overwhelming body of evidence to support the theory that housing prices are a primarily a function of supply and demand and that that the primary reason for escalating housing prices in this area is due to a shortage of housing units.

You are denying basic facts. You are just as bad as the anti-vaxxers who think they are better equipped than actual scientists to make evidence-based decisions.

I am done arguing with you.

DirectorBeneficial48 t1_j9qizni wrote on February 23, 2023 at 9:14 PM

>You are the one who is arguing that the basic rules of supply and demand somehow don't apply to the housing market.

Cool, show me the evidence it does. I've looked it up a bunch of times. It isn't there. There's no correlation to the locales that have had the most development and the rent in said locales. It flat out is not there.

There's clearly another force behind simply "create more units" that all y'all don't want to bring up, which is greed.

I've shown the very basic steps elsewhere, so I'll copy/paste for you.

>I'll help you. Google up "US cities with the most development" (substitute some other synonym for development, such as "new buildings/homes" if you like). Now do the same for "Average/median rent by city in US". Hell, if you really want to get spicy, toss in a third factor and add in "US cities with the highest rent growth".

And the fact that you work with the exploiters of us is not a mark in your favor. You are stuck in your bubble that believes this whole cloth without actually looking at the very basics of the argument.

> I have been in meetings with housing strategists and investment professionals at large institutional investment firms. If I told them that there is zero correlation between housing supply and housing prices, I would be laughed out of the room.

Yea, no shit, they aren't around to want to hear the very underpinnings against their raison d'etre.