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scoofyyesterday at 10:16 PM1 replyview on HN

My point is only that we can see the value capture of the housing shortage by looking at the delta of housing development COGS and housing prices. I generally agree with you that there is plenty of room for profit margin, but when we see housing prices diverging significantly from lowest-cost construction prices, then we can measure our shortage.

My main point is that, because housing takes a very long time to build en masse, you'd want the housing to start being built before people need it.

It's like any other strategic reserve we have. Since demand can spike, and we can rarely see the spikes coming, but we know they will come, just be prepared by subsidizing the development of that thing. We do it for food, oil, weapons, vaccines, you name it. If we know we will need it in the future anyway, and it take a long time to produce, we create strategic reserves. We should do that for housing.


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lucketonetoday at 1:47 PM

> We do it for food, oil, weapons, vaccines, you name it.

Much easier to have a reserve of X, if X can be put in a warehouse and transported later.

After reading comments here, I think that US has plenty of cheap housing… but… cheap housing is in places where people don’t want to live. (Demand is low, price is low)

If you actually plan to use your own money to build a reserve of housing, better double-tripple check if anybodyz will want to live there.