>"Real Estate is Investment" should naturally lead to overproduction as investment-only properties get built to satisfy that demand—as we see in China
China had massive home overproduction because the goddamned totalitarian government told builders to build or else. It was not market forces.
How do you suppose we do that in the US? Especially with this administration?
In the US, builders don't build 100 starter homes because it is more profitable and easier to build a couple McMansions and sell them for crazy prices. THOSE are the homes that get built as "investments". No builder will benefit from producing a large supply of homes, so they don't. The market will not self correct.
China had massive home overproduction because the goddamned totalitarian government told builders to build or else. It was not market forces.
How do you suppose we do that in the US? Especially with this administration?
In the US, builders don't build 100 starter homes because it is more profitable and easier to build a couple McMansions and sell them for crazy prices. THOSE are the homes that get built as "investments". No builder will benefit from producing a large supply of homes, so they don't. The market will not self correct.