Ive heard repeatedly when trying to learn about our housing situation that we don’t have enough homes. I don’t understand how that’s the case or if it’s even true. Who or what is stopping more homes from being built exactly? If the demand is so high and the supply is so low then the suppliers would obviously ramp up production, right?
In: Economics
In my neighborhood, there are new houses being built. The city has the infrastructure (roads, water, electricity, etc) and space to accommodate new housing. Every single house is being sold before ground is even broken. No discounts, minimal customization, just “we’re going to be making this house, it’ll be done in 6 months or so, and costs this much. Do you want it?” And every single one has someone saying yes within a week of posting. And there are 6 builders that each finish like 2-3 houses a week. When one of those houses finishes before they get a buyer lined up, that’s when there’s enough housing.
Meanwhile, in Seattle, there isn’t any more room to build more houses. Every lot that can have a house already does have a house. So you have a tiny old house that’s probably worth $200k anywhere else going for $1m, simply because it’s in Seattle.
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