alt Hacker NewsIn a normal market, they would. But housing is highly regulated with artificial shortages, so that pricing is very distorted.
In a normal market, they would. But housing is highly regulated with artificial shortages, so that pricing is very distorted.
Regulation is not what suppresses production, but the actual profit margins. It's extremely hard to make money building housing because the cost of land and labor are so high. These costs are high because we now live in an advanced economy where land can do much more valuable things than "be housing", and laborers can do much more productive things than "build housing."