You’re assuming a perfectly liquid market here. There can be a lot of friction when trying to move in a bunch of people or buy a bunch of office space in one place. New construction can avoid that issue.
If there is no friction, and things are perfectly liquid, then the amount of price change required to cause big moves is very small.
You’re assuming a perfectly liquid market here. There can be a lot of friction when trying to move in a bunch of people or buy a bunch of office space in one place. New construction can avoid that issue.
If there is no friction, and things are perfectly liquid, then the amount of price change required to cause big moves is very small.