May 15, 2021
Fresh air from Canada, thanks to Stephen Punwasi, one of North America’s top influencers in finance and risk. Writing for Better Dwelling, Punwasi explains something many California state legislators are ignorant of as they embrace the Scott Wiener ideology of forcing cities to approve dense luxury housing to help the poor.
Read on: “Home prices are expensive. Let’s build more homes, and the cost of all of them will become affordable. It’s supply and demand… like your local politician and mysteriously funded community group always say. Except homes are being built and delivered at a record pace, way in excess of population growth. You’re getting a little suspicious. Home prices aren’t falling. They’re actually rising at one of the fastest rates in history.
“What gives? Hate to break it to you, but an increase in new home construction should always increase prices. During a building boom, more building should speed up price growth. That’s because the laws of supply and demand apply to all parts of a house — not just the final product. Let’s take a quick dive into why home prices are rising as building increases.”