On: Priced out of home ownership

[jfoster]

Put it this way: if over-supply were a problem, what would happen?

[lotsofpulp → jfoster]

Depends if property tax was appropriately high to encourage productive use of the land (rather than letting it sit empty).

[jfoster → lotsofpulp]

That's true. Property tax can help, but at some other level of over-supply, it doesn't even matter what the property taxes are. Once there is far too much supply (perhaps to the extent that it would be a bubble), pumping millions of dollars into housing that will sit empty or rent at a low yield will not be a good use of capital.