So, after 100 years of zoning regulations and other anti-supply measures, the final equilibrium of the U.S. economy can be summarized as follows:
-Productivity and efficiency gains in all areas of the economy EXCEPT real estate can result in a stabilization of prices and eventually have no impact on inflation.
-Land prices, and the purported value of single family homes, can appreciate perpetually at a range of 5 to 8% annually.
-Exceptions to the land & house price appreciation are tolerated for geographic areas that are experiencing population decline and/or environmental devastation---unless political influence deems that they will be perpetually insured by taxpayers.
Part 4: Once there are no more exceptions, you have the problem everywhere of too many buyers with too much money, so you must keep reducing the number of buyers through legal abolition or general economic austerity.
I also think that to really eliminate systemic risk in the economy we should ultimately abolish lending for single-family home purchases. Houses can be inherited, bought with cash only, or transferred to trusts for historic preservation. There will also be a general prohibition on rental of single family homes by individuals or any corporate entities.
So, after 100 years of zoning regulations and other anti-supply measures, the final equilibrium of the U.S. economy can be summarized as follows:
-Productivity and efficiency gains in all areas of the economy EXCEPT real estate can result in a stabilization of prices and eventually have no impact on inflation.
-Land prices, and the purported value of single family homes, can appreciate perpetually at a range of 5 to 8% annually.
-Exceptions to the land & house price appreciation are tolerated for geographic areas that are experiencing population decline and/or environmental devastation---unless political influence deems that they will be perpetually insured by taxpayers.
Part 4: Once there are no more exceptions, you have the problem everywhere of too many buyers with too much money, so you must keep reducing the number of buyers through legal abolition or general economic austerity.
I also think that to really eliminate systemic risk in the economy we should ultimately abolish lending for single-family home purchases. Houses can be inherited, bought with cash only, or transferred to trusts for historic preservation. There will also be a general prohibition on rental of single family homes by individuals or any corporate entities.