Quote:
Originally Posted by ski82
The supply & demand argument is limited. Back to Micro 101, the purpose of the supply and demand curve is price discovery. Prices in this point are constantly adjusting to shifts in the demand curve. There has been very little change in the supply side, which is heavily influenced by zoning, governments, and other non-free-market factors that many try to pass off as free market under the moniker of “supply and demand”.
Which brings us too things mhays suggests above, things that would actually shift the supply curve and enable a new price equilibrium. If the problem of land is too high? Upzoning wide ranges of land across the area would be a great way to increase the supply. In this way, it could bring down the price of a piece of land downtown even if that land itself didn’t change its zoning at all.
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Way too sophisticated for me. I like to keep things simple. More demand than supply drives price up; less demand that supply drives price down. That's all the sophistication that I need. I know there's all manner of iterations but that's for the sophisticated which I'm not.
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