I agree with everything you say, indeed the increase in demand is only the first movement of market in search for a new equilibrium. Surely at higher prices markets become more attractive, and those which has a lower cost of entry will attract new supplier, and price goes down, and so on. It is difficult to predict a new equilibrium, although I share your view that the main problem is going to be houses.
I agree with everything you say, indeed the increase in demand is only the first movement of market in search for a new equilibrium. Surely at higher prices markets become more attractive, and those which has a lower cost of entry will attract new supplier, and price goes down, and so on. It is difficult to predict a new equilibrium, although I share your view that the main problem is going to be houses.