Building unsubsidised housing pushes down rents and prices while freeing up cheaper properties
The study found that when Americans were asked to predict the impact of a supply shock on prices for labour, commodities or consumer goods, the correct answers outnumbered the wrong ones by at least two to one. When asked about the impact of a 10 per cent increase in regional housing supply, however, 40 per cent say prices and rents would rise, while only a third say they would fall.
Incredible!
That is insane that 40% of Americans don’t understand basic supply and demand.
Seems kinda low honestly. About half the country votes for supply side economics and still thinks Reagan was a good president… so…
Maybe the thought process is that the area is clearly in demand and on the rise?
Supposedely when we need things we subsidize them. We need oil we subsidize oil so why not subsidize residential building construction?
