Yes of course. The demand has to move where there is more supply or more affordability. The question was what we could do - and one of the solutions is to eliminate regulation and red tape to increase supply in high demand regions.
It is simply a supply and demand issue with a lot of government interference in the market from permitting to zoning to taxing. In CA one of the problems for the young but benefit to those who have been settled a while is that property taxes are locked in at a low valuation and (if any) interest rates locked in at half or below the current borrowing costs. Thus, there in little desire for homeowners to sell They’d have to reset their rate and the property tax, and probably pay a lot in state and federal taxes on the gain. Lots of government interference in the housing market and it is exacerbated by taxes and interest rates at the moment.
“In CA one of the problems for the young but benefit to those who have been settled a while is that property taxes are locked in at a low valuation and (if any) interest rates locked in at half or below the current borrowing costs. Thus, there in little desire for homeowners to sell They’d have to reset their rate and the property tax, and probably pay a lot in state and federal taxes on the gain. Lots of government interference in the housing market and it is exacerbated by taxes and interest rates at the moment.”
So to prevent government market interference you’d tax people out of their homes and social networks.
How about your employer and its employees setting up shop in another square mile of our multi-million square mile country and not trash my square mile?