Quote:
Originally Posted by SebC
Honestly, I don't know. Having said that, the high prices observed for inner city, family homes reflects high demand. What we don't see is a large quantity demanded, which is a different quantity that also reflects suppy (quantity demanded and quantity supplied are the same for a market in equilibrium).
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I know we're off topic now, but I have no idea how you get to your position that the current market is not in equilibrium? Even if the inner city prices are too high and suburb prices are too low though, it would appear to be a small amount, as there aren't drastic price moves to compensate in either case at this point?
Secondly, if you want to turn this into a pure economics discussion, the introduction of a tariff to build new subdivisions would actually create more inefficiencies, never mind the policy ramifications that would arise. In other words, you don't want to build overpass and deal with snow removal and transportation now, but how do you avoid that once this kind of feel is implemented? Now the city is in a position where they have to address all of these issues because everyone is "paying their fair share", only you still have an inequality because the inner city has paid their fair share since the dawn of time (allegedly), I know I'm in a suburb, and according to the inner city denizens haven't paid my fair share, and of course the new builders would be. Careful what you wish for.