It does, but it’s a reason to regulate the market. Otherwise there is minimal incentive to build affordable housing. The margins on luxury housing are just too fat. A developer is better letting half of a luxury setting sit empty than selling out affordable space. Same reason there is so little competition for affordable cars.
It does, but it’s a reason to regulate the market. Otherwise there is minimal incentive to build affordable housing. The margins on luxury housing are just too fat. A developer is better letting half of a luxury setting sit empty than selling out affordable space. Same reason there is so little competition for affordable cars.
Regulating the market is taking it out of the free market though, and i am a very strong supporter of that.
https://mises.org/mises-daily/children-and-rights