This makes sense to me, if 10 families want a place to live and there are 8 places to live, housing prices will trend towards infinity, until people give up and multiple families live together.
We need more places to live, at the end of the day there's no way around that.
Regulation might help though. If we regulate it so that it's harder to profit from real estate, then people will find other investments instead. This is good, because as long as real estate is a favorite investment for the wealthy, there will be a "mysterious" resistance to any efforts to lower the prices by building more houses.
I'm not an expert here, but this makes sense to me. Did I miss anything?
No a good portion of them are turned into rentals controlled by a few.
The demand will not go down. The supply always lags behind, and can face hurdles to build, for example - renters are generally not present in city politics.
The supply then use price controlling algorithms to slowly increase and extract the wealth and income of the renters.
We need more places to live, at the end of the day there's no way around that.
Regulation might help though. If we regulate it so that it's harder to profit from real estate, then people will find other investments instead. This is good, because as long as real estate is a favorite investment for the wealthy, there will be a "mysterious" resistance to any efforts to lower the prices by building more houses.
I'm not an expert here, but this makes sense to me. Did I miss anything?