Thank you. Too many people genuinely believe it is a simple supply and demand problem. Housing is a much more complicated "commodity" than people want to concede.
A house next door to me sat vacant for 4 years here in Vancouver. The owner couldn't sell at the asking price. The owner never lived in the house himself ever. He couldn't lower the price because then he would be losing money (selling it for less than what he bought it for).
Over that 4 year period, immigration to Canada dropped dramatically.
It just recently sold for slightly lower than the asking price (but slightly more than what the owner had bought it for 4 years prior). It was sold to a new immigrant to Canada. At least the new owner is actually living in it.
Why would developers want to build so much supply that the price drops?
Are there any military personnel working at the Oracle Facility? Big Tech is very much used in this War so not a stretch to imagine military personnel working there.
Apparently the hotels that were struck in Dubai etc were attacked because US military personnel were working remotely there due to US bases being damaged.
The irony about tRump is he sometimes says the quiet part out loud. He is a pathological liar yet at the same time he speaks truth. He revealed the USA's ruling Elite's desire to make Canada a vassal state. Arguably, the Canadian Elite did it when Brian Mulroney, (he was originally against it himself but the Business lobby told him otherwise: he dutifully complied with his donors), pushed and signed the free trade agreement: "I'm rolling the dice!". He was persuaded to put the decision to an election first. He won the majority of seats, but not the popular vote. He signed it anyway. Now, Canada finds itself in the position that his opposition warned about: that putting your eggs in one basket was taking a big risk that US wasn't going to be ruled by a Fascist Dictator.
But thanks to the Fascist Dictator Canadians have once again woken up to the folly of tying yourself so closely to a giant who goes rogue. The Republican Party should be deeply ashamed of themselves for kowtowing to tRump. Mind you, there is plenty of things the Republican Party should be ashamed about - they helped create the situation that would make the election of tRump possible - with their poverty inducing policies. The Republican Party is as loathsome as the Nazi Party.
And then there is the feckless Democrats. Absolutely useless.
I thought it was development companies that build houses? And why would development companies build so much housing that the value started to drop? Are you saying that "leftists" put up barriers to new housing such as regulation that helps drive up the overall cost of building and hence the price of housing? I would agree with you there. Are you sure "housing has been built in droves" is what brought the price of rent down?
House prices went sky high because of investors/speculators increasing demand (and massive immigration). Maybe if the government regulated more who buys housing (home dwellers not investors) rather than regulating what gets built. Also, have more sensible immigration levels.
Since developers will be less likely to build with falling prices perhaps the govt can build rent to own housing for lower income earners. Or incentivize private developers to build affordable housing.
High prices doesn't necessarily mean its purely a supply problem. If profit is high with low supply for developers what incentive would they have to increase supply?
I'm not going to downvote you, but all of your preferred solutions are exactly the problem. Everyone who thinks more oversight and "support" will fix the problem has their own specific bogeyman responsible for higher housing prices, "bans" it, fails to actually ban it, and then all they have accomplished is that it's now at least slightly more difficult to build housing, and therefore at least slightly more expensive.
> And why would development companies build so much housing that the value started to drop?
Because they have very healthy margins currently, and would probably continue to build if their margins drop from around 20% to around 15%. At some point it would become an issue, but we haven't seen that in the areas where building is keeping up with demand or even exceeding it slightly.
> Are you sure "housing has been built in droves" is what brought the price of rent down?
Yes. What else could it possibly be?
> House prices went sky high because of investors/speculators increasing demand (and massive immigration). Maybe if the government regulated more who buys housing (home dwellers not investors) rather than regulating what gets built. Also, have more sensible immigration levels.
That, plus the many, many artificial restrictions on increasing supply, which actually are the issue. Hint: "speculators" are a tiny portion of the market and aren't leaving homes unoccupied for extended periods of time, and "massive" immigration is also a very small portion of the increased demand for housing. Also, if you want to understand the alternative to population growth, see the Rust Belt in the 1980s.
> Since developers will be less likely to build with falling prices perhaps the govt can build rent to own housing for lower income earners. Or incentivize private developers to build affordable housing.
This already happens. It's ineffective.
> High prices doesn't necessarily mean its purely a supply problem. If profit is high with low supply for developers what incentive would they have to increase supply?
Because its literally how they make money, and new participants in the market are not barred from entry?
>Ironically, if yuan becomes new petroleum currency, it might hurt Chinese long term.
Agreed. Which is why the Chinese do NOT want their currency to become the Petrodollar or world's reserve currency. They know that that is what destroyed US Manufacturing. China wants to maintain their manufacturing dominance. They've seen what de-industrialization has done to the US.
How are you connecting the petrodollar and US manufacturing? US manufacturing was destroyed because companies closed their factories in the US and used factories in China because labor was cheaper and they were less regulated.
Under normal conditions, when your economy becomes less competitive, your currency gets depreciated, increasing competitiveness.
Unless of course everybody is forced to buy your currency to get an essential resource. This causes:
- the currency to maintain value better
- puts you in position of other countries having to maintain a trade surplus with you so they can actually purchase said resource
- the oil producers end up with great amounts of your currency, which they have to spend, getting a political foothold in your country.
Petrodollar almost certainly was devastating to US economy. And like most resource curses, it's like a drug - you need to stop taking it to get better, but it will hurt as hell.
Petrodollar creates demand for dollars. This is demand that no other currency gets. That's why US production is expensive vs other countries. China labor is cheaper and it is less regulated, but the petrodollar exacerbates the problem.
But BB has achieved the opposite. Israel is now reviled the world over. He flushed any sympathy generated by the Holocaust down the toilet. Even Jews in USA now experiencing hate crime towards them like never before.
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