agreed. but as with all things, perhaps we can make this more and more cost efficient too. in fact i think, we are going to have to, to make it tenable at all.
This Giant 3D Printer Built 10 Houses In Just 1 Day (Video)
- Thread starter DEAD7
- Start date
interestingyou have no idea what you're talking about
detroit houses are cheap because of foreclosures, in 2006 a detroit house could get mortage for over 100,000 I'm talking a 3 bed room bungalow
once people foreclosed, everybody brought the houses for 10,000 so that destroyed the COMPS and the property value
they passed law for FHA allowing foreclosure sells to be used as comps, so even if a brought a bank owned near an area where a house sold for 80,000
all the foreclosure comps in the area would still hold back the value
real estate prices have nothing to do wit the cost of building
That's where shyt is headed anyway.
heres the dilemma though: are we going to have vast slums, widespread poverty etc, or are we going to have livable systems for all these people? the former seems more likely than the latter, given current technology.
Camile.Bidan
Banned
What your saying is right, but I don't think you get what I am saying.
In detriot, demand is low. I would never want to live there, and I don't think a lot people would either. All the other factors that your are talking about affect DEMAND they don't affect supply.
we are talking about a scenario were demand is remaining static, but the supply curve is moving to the right because of lower marginal costs per unit.
Moving from S1 to S2 in this picture
You're talking about a situation where the demand curve is shifting to the left.
What your saying is right, but I don't think you get what I am saying.
In detriot, demand is low. I would never want to live there, and I don't think a lot people would either. All the other factors that your are talking about affect DEMAND they don't affect supply.
we are talking about a scenario were demand is remaining static, but the supply curve is moving to the right because of lower marginal costs per unit.
Moving from S1 to S2 in this picture
You're talking about a situation where the demand curve is shifting to the left.
You don't understand real estate, real estate is neither goods or services which is what your supply and demand is for
Every house in Detroit could sell tomorrow, but if they all sell for 20,000 thats all every house will be worth is 20,000 doesn't matter how many are brought
or if people want to buy them, the bank isn't lending more than 20,000.
Property value has to do with what people are willing to pay for it, backed up by actual sales
People never stopped buying houses in Detroit, its just the banks were selling them so cheap to get them off their books that it destroyed the value in the city
Camile.Bidan
Banned
I not arguing against the bolded. Real Estate is a good and a service. Put your thinking cap on for minute here dude.
What makes land or property different is that the Supply curve has a steeper angle. But think about this for a minute. let's I have 2000 sq ft of land, and I can either put hotel, a Apartment building or a one house on the land. Which building is going to have more value? It depends on so many different factors, so it is inconclusive given the facts. What building is going to have lower production costs? more than likely the house is going to cost less than the hotel or the apartment. People aren't going to build an expensive apartment or hotel unless they know there going to at least breakeven. Right? Can you see how production costs have an impact on the real estate market now?
vs a completely destroyed economic housing sector where no one can afford to buy said homes.
agree completely
-Farrier
ExodusNirvana
Change is inevitable...
How safe are these homes though? Would these things survive a blizzard? Hurricane?
A Real Human Bean
and a real hero
You're thinking about this all wrong and it's a very simple concept.
Price, for the most part, is determined by the market , but can also be influenced by government policy. However much you spend on producing something is irrelevant to its value on the market.
What production costs might tell you is the lowest amount a producer might be willing to accept in order to construct a home, but even then that isn't always the case, and again, it has absolutely no impact on market prices.
But this is the case with pretty much any good, not just real estate.
Camile.Bidan
Banned
Production costs are not irrelevant to the market because the supply curve is a function of production costs.
Government policy can move the supply or demand curves (Subsidy or tax) or distort the market with price floors or ceilings.
Which has a different effect than regulatory price floors and ceilings.
A Real Human Bean
and a real hero
I didn't say production costs are irrelevant to the market, I said they are irrelevant to prices. It's just an economic fact.Production costs are not irrelevant to the market because the supply curve is a function of production costs.
Government policy can move the supply or demand curves (Subsidy or tax) or distort the market with price floors or ceilings.
Which has a different effect than regulatory price floors and ceilings.
Camile.Bidan
Banned
Price is determined by the intersection of the Supply and Demand curves. The supply curve is is function of the Marginal cost curve. It's not irrelevant.
In a static model, moving the supply curve to the right will always lower price.
In a market where there is a limited quantity of goods and there is no production, then there wouldn't be production costs wouldn't be a factor.
A Real Human Bean
and a real hero
The supply curve tells you how much a producer is willing to produce at any given price. They are two separate things. A producer's production cost has no effect on the price, as it's already determined by the market, not the producer.
As I said, in this case, all production costs tell you is the lowest price a producer may be willing to sell at. This is Microeconomics 101. You can ask any economics professor and they will tell you the same. Peace.