According to my non-economic brain, my mental model is something like:
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Assume a grid where demand for each grid-space is growing at a constant rate. Assume that supply for each grid is fixed, such that the price grows at a constant rate.
Assume part of the current price of each spot is a function of the whole grid's expectation of each grid's future productivity (as in, like an apartment with 100 residents is more productive than a single family home with 2 residents)
If we relax the supply constriction of any individual part of the grid, then we should expect the price of those relaxed grid spaces to rise simply because they are more productive.
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Right?
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> the government can assist people in creating housing co-ops — buildings owned and managed collectively by the residents.
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I don't like this because it doesn't solve the more fundamental, national issue of spatial misallocation.
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