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The real housing crisis is one of quantity

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The real housing crisis is one of quantity Enough Already 04-19-2008
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Posted by george conklin on May 6, 2008, 2:46 pm

>
>
>>
>>>
>>>>>
>>>>> wrote:
>>>>>> Can you support your points below, or are you just throwing out you
>>>>>> opinion?
>>>>> ----
>>>>>
>>>>> Developers have prices artifically raised by governmental rules which
>>>>> limit "sprawl" and thus force housing prices up to many times
>>>>> replacment
>>>>> costs. This is what makes housing unaffordable to start with.
>>>>
>>>> It's called "supply and demand" - the supply of workable LAND is
>>>> restricted
>>>> and even diminishing, while the DEMAND increases. The rules may be to
>>>> alleviate "sprawl" or just to protect certain insects, rodents, etc. In
>>>> this
>>>> case the S&D curve is artificially contrived and the developers have
>>>> nothing
>>>> to do with it.
>>>>
>>>> Matt
>>>
>>> Developers support smart growth because they can put more housing on
>>> less land and charge more too.
>>
>> Developers don't set the price, the market does. Econ 101 - learn it.
>>
>>
>
> Eco 101 teaches you theoretical
> models.....you need more advanced
> courses to approach reality.
>
> In reality theoretical supply-demand
> markets never occur.
>
>
>
>

Eco 101 assumes free markets too. Smart Growth prides itself on manipulated
markets for social goals, and this raises the price of land and housing.



Posted by Matt W. Barrow on May 6, 2008, 4:50 pm
>>>>
>>>> Developers support smart growth because they can put more housing on
>>>> less land and charge more too.
>>>
>>> Developers don't set the price, the market does. Econ 101 - learn it.
>>>
>>>
>>
>> Eco 101 teaches you theoretical
>> models.....you need more advanced
>> courses to approach reality.
>>
>> In reality theoretical supply-demand
>> markets never occur.
>>
>>
>>
>>
>
> Eco 101 assumes free markets too.

No, it does not. Free market theory derives from S&D (the best way to meet
objective under the reality of limited resources.

> Smart Growth prides itself on manipulated markets for social goals, and
> this raises the price of land and housing.

"Smart Growth", as used, is an oxymoron.




Posted by george conklin on May 6, 2008, 6:54 pm

>>>>>
>>>>> Developers support smart growth because they can put more housing on
>>>>> less land and charge more too.
>>>>
>>>> Developers don't set the price, the market does. Econ 101 - learn it.
>>>>
>>>>
>>>
>>> Eco 101 teaches you theoretical
>>> models.....you need more advanced
>>> courses to approach reality.
>>>
>>> In reality theoretical supply-demand
>>> markets never occur.
>>>
>>>
>>>
>>>
>>
>> Eco 101 assumes free markets too.
>
> No, it does not. Free market theory derives from S&D (the best way to meet
> objective under the reality of limited resources.
>
>> Smart Growth prides itself on manipulated markets for social goals, and
>> this raises the price of land and housing.
>
> "Smart Growth", as used, is an oxymoron.

Technically it means any growth sactioned by planners, following goals set
by the APA.



Posted by Matt W. Barrow on May 6, 2008, 4:48 pm
>
>>>>
>>>> It's called "supply and demand" - the supply of workable LAND is
>>>> restricted
>>>> and even diminishing, while the DEMAND increases. The rules may be to
>>>> alleviate "sprawl" or just to protect certain insects, rodents, etc. In
>>>> this
>>>> case the S&D curve is artificially contrived and the developers have
>>>> nothing
>>>> to do with it.
>>>>
>>>> Matt
>>>
>>> Developers support smart growth because they can put more housing on
>>> less land and charge more too.
>>
>> Developers don't set the price, the market does. Econ 101 - learn it.
>>
>>
>
> Eco 101 teaches you theoretical
> models.....you need more advanced
> courses to approach reality.

You've got it completely inverted.

>
> In reality theoretical supply-demand
> markets never occur.

Excuse me?



Posted by Sid9 on May 6, 2008, 4:53 pm


>>
>>>>>
>>>>> It's called "supply and demand" - the supply of workable LAND is
>>>>> restricted
>>>>> and even diminishing, while the DEMAND increases. The rules may be to
>>>>> alleviate "sprawl" or just to protect certain insects, rodents, etc.
>>>>> In this
>>>>> case the S&D curve is artificially contrived and the developers have
>>>>> nothing
>>>>> to do with it.
>>>>>
>>>>> Matt
>>>>
>>>> Developers support smart growth because they can put more housing on
>>>> less land and charge more too.
>>>
>>> Developers don't set the price, the market does. Econ 101 - learn it.
>>>
>>>
>>
>> Eco 101 teaches you theoretical
>> models.....you need more advanced
>> courses to approach reality.
>
> You've got it completely inverted.
>
>>
>> In reality theoretical supply-demand
>> markets never occur.
>
> Excuse me?
>
>

Theoretical Eco 101 supply-demand
curves require perfect knowledge by
buyers and sellers.

That NEVER happens in the real world.
Never.




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