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Another nonsensical statement from someone who cannot grasp Economics.
It's not a conspiracy theory, it's Supply & Demand.
People are pricing themselves out of major cities through their desire to live there.
You can't seem to grasp the reality that people are the Market.
There are 39,287 major housing markets in the US, and each of those has 6 to as many as 40 sub-markets, you know, neighborhoods.
Some neighborhoods are more desirable than others for any number of reasons, so housing costs can vary greatly within one of those 39,287 major markets.
For example, I lived in a particular neighborhood that was built pre-WW I, and because it was, not only do the houses not have garages, they don't even have driveways.
On extremely rare days, I could park in front of my home, and occasionally I could park on street and walk 200' or so to my home, but more often than not, I ended up parking 1-4 blocks away on another street. Such areas are not desired by older people or people of any age group with children, because no young mother wants to tote her children and groceries 3-4 blocks from the car to her home, and make several trips, especially in inclement weather.
Only a small segment of the population, namely undergrad and graduate students and single professionals have any desire to live there, and consequently, houses sell for $30,000 to $50,000 or rent for $450/month.
In areas where housing is desirable, it costs more.
Most housing areas, especially in dense urban areas, have a finite supply of housing.
It is either not possible, or not feasible, to increase the supply of housing, because every inch of land is occupied by a dwelling place or a business.
Eliminating businesses is self-defeating, because it makes areas less desirable. People want quick access to gasoline stations, convenience stores, restaurants, other grocery and retail, and services.
Even where you could tear down two single-family homes, subdivide the two lots into three lots and build three single-family homes, it would not significantly increase the supply of housing to lower the cost of housing.
The only effective way to increase the supply of housing is multi-story multi-family units, but those would have to be 2-3 bedrooms at a minimum, otherwise your market segment is only going to be older people with no children, or single people or young couples with no children, and families with children are still left in a market with few options, so you haven't really impacted the supply of housing at all.
And this is not the complete case. Yes demand and supply rise costs, but demand and supply are artificially constructed by investors.
When part of the demand exists for investing money in real estate, flipping housing, and storing wealth in a certain market, demand is artificially risen. Conversely this means developers make more profit building high-end real estate which makes part of the supply inaccessible for middle income people.
And this is not the complete case. Yes demand and supply rise costs, but demand and supply are artificially constructed by investors.
When part of the demand exists for investing money in real estate, flipping housing, and storing wealth in a certain market, demand is artificially risen. Conversely this means developers make more profit building high-end real estate which makes part of the supply inaccessible for middle income people.
Companies wouldn't be able to raise capital if investors had to eat all of the risk for just a 10% profit. Millions of people wouldn't have jobs. I'm liberal than most on CD, but there is nothing inherently wrong with partaking in the stock market. This is ludicrous.
You can't help but notice that the OP didn't dare respond to this post. Of course, I have +1 the topic, and for being a subforum noob and doing so, I apologize.
You're so full of it. That means they don't have access to the same opportunities, nor do they have the capital of time.
Winterfall Shuffle. Whether they have access to the same opportunities or not has nothing to with your claim that normal people cannot afford to live in major cities.
Quote:
Originally Posted by Winterfall8324
Big cities are no longer affordable of the masses.
Yes, you said that already. Problem is you cannot support this argument, other that trying to prove various other things that you think by extension proves this as well.
Answer me this: are there millions of normal people living in major cities? It's a simple yes/no question. (Everyone on this forum knows you won't answer)
Here is an example of how you work:
Winterfall: There are no more grizzly bears in Yellowstone.
SanePerson: Sure there are, the park says there are 700
Winterfall: No there aren't any, grizzly bears need 30 lbs of food per today so there can't be any
SanePerson: Their diet needs don't prove there aren't bears, in fact here's a picture of one from yesterday
Winterfall: Nope, it's harder and hard for grizzles to survive with human encroachment, so there are none left
SanePerson: How do you explain all the pictures of grizzly bears in Yellowstone?
Winterfall: Black bears are far more adaptable. That proves I'm right.
SanePerson: It doesn't prove you're right, since grizzly bears are actually there.
Winterfall: Grizzly bears are hunted illegally for their fur, so there can't be grizzles.
etc.
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