There are numerous known exceptions to simplistic supply/demand arguments, including Giffen goods, Veblen status, lack of insight on either side, information arbitrage, and so on.
It's not impossible some of them apply to city housing markets.
What annoys me about arguments about housing is that housing is clearly a systems problem, not a one-or-two-variable optimisation problem.
Availability and rental prices depend on a complex network of interacting drivers, not all of which are purely economic, and some of which aren't even local.
Supply and demand storytelling doesn't even begin to come close to providing a useful model of that network.
It's not impossible some of them apply to city housing markets.
Yeah, that's why I asked for real world examples.
But I still haven't seen any. If this actually happens, there should be real world examples that people would bring up in these arguments, right?
Supply and demand storytelling doesn't even begin to come close to providing a useful model of that network.
I don't want to be rude, but isn't this just this standard anti science handwaving? "The world is far more complex than western civilization can grasp, therefore my gut feel must be the real truth!"
I mean, it's fine to say a model isn't perfect, but unless you have a better one to replace it with, or at least a clear example of something wrong, you're not really helping.
To me the SF housing market conforms perfectly with the supply and demand model: With a huge rise in demand, and supply being kept almost constant, it predicts the kind of strong price rises we've seen last few years.
There are numerous known exceptions to simplistic supply/demand arguments, including Giffen goods, Veblen status, lack of insight on either side, information arbitrage, and so on.
It's not impossible some of them apply to city housing
markets.
If you think there is such effects you should make the case, rather than hint that they might exist.
Supply and demand storytelling doesn't even begin to come close to providing a useful model of that network.
I think 95% of economists would take issue with that statement
Comments
Facts are only facts if they're actually factual.
There are numerous known exceptions to simplistic supply/demand arguments, including Giffen goods, Veblen status, lack of insight on either side, information arbitrage, and so on.
It's not impossible some of them apply to city housing markets.
What annoys me about arguments about housing is that housing is clearly a systems problem, not a one-or-two-variable optimisation problem.
Availability and rental prices depend on a complex network of interacting drivers, not all of which are purely economic, and some of which aren't even local.
Supply and demand storytelling doesn't even begin to come close to providing a useful model of that network.
Yeah, that's why I asked for real world examples.
But I still haven't seen any. If this actually happens, there should be real world examples that people would bring up in these arguments, right?
I don't want to be rude, but isn't this just this standard anti science handwaving? "The world is far more complex than western civilization can grasp, therefore my gut feel must be the real truth!"
I mean, it's fine to say a model isn't perfect, but unless you have a better one to replace it with, or at least a clear example of something wrong, you're not really helping.
To me the SF housing market conforms perfectly with the supply and demand model: With a huge rise in demand, and supply being kept almost constant, it predicts the kind of strong price rises we've seen last few years.
If you think there is such effects you should make the case, rather than hint that they might exist.
I think 95% of economists would take issue with that statement