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Sean O'Hara <seanoh...@[EMAIL PROTECTED]
> wrote:
> > Or that there's a high demand for houses in
> > Edinburgh which can't be met for some reason, such
> > as lack of room for expansion.
David Friedman
> If that is happening, it will show up in land prices,
> at which point you can't build for 60K if you include
> the price of the land.
>
> What is the cost of land to build on? It's the price
> at which you can get such land. It makes no sense to
> say "the price is only 15K, but at that price you
> can't buy any."
You assume that housing is the product of a market
economy. This used to be the case, but in some areas it
is no longer the case. Increasingly, building a new
houses is primarily a political action, rendering prices
meaningless - politicians decide that new houses shall
be build, where they shall be build, what sort of houses
they shall be, the price of the land, the price of
labor, the rewards to the developer, shall be.
Housing is going the way American medicine did -
capitalism without market prices, socialism without a
central plan.
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