Re: Economic Crisis Avoidance Deus ex Machina - Part I: Active Asset Price Inflation - Eric Janszen
Also useful maybe to think of it this way: Roughly the same number of 4+ bedroom units were built in 2018 as 1998. That hasn't changed in 20 years. But only half the number of 2-bed and 3-bed units are being made. In 1998, about half of all newly built homes homes had 2 bathrooms or less. By 2018, 65% of new construction had 2.5 baths or more. So they're adding rooms for sure. But I can't think of many families who really need 2.5 or more baths and 4 or more bedrooms. So giant luxury units cost a lot to build and sell for whopping prices.
The question remains, why can't we seem to get anyone to build a 3 bed, 2 bath house with formica counters anymore when we could 15 years ago?
Also useful maybe to think of it this way: Roughly the same number of 4+ bedroom units were built in 2018 as 1998. That hasn't changed in 20 years. But only half the number of 2-bed and 3-bed units are being made. In 1998, about half of all newly built homes homes had 2 bathrooms or less. By 2018, 65% of new construction had 2.5 baths or more. So they're adding rooms for sure. But I can't think of many families who really need 2.5 or more baths and 4 or more bedrooms. So giant luxury units cost a lot to build and sell for whopping prices.
The question remains, why can't we seem to get anyone to build a 3 bed, 2 bath house with formica counters anymore when we could 15 years ago?
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