Paul Krugman looks at the trajectories of rental and buying, and sees appreciating in housing but basically none in rentals, which would not be the case if there were actually a shortage of land in desirable locations.
Krugman is clearly right.
Tuesday, April 8, 2008
Delong is Wrong and Krugman is Right
Brad Delong belives that a significant part of the housing bubble appreciation was due to a real lack of space, and thus he guesses that only about ½ of the appreciation will be lost, thinking that some of the appreciation is being driven by the , "location, location, location" factor.
Paul Krugman looks at the trajectories of rental and buying, and sees appreciating in housing but basically none in rentals, which would not be the case if there were actually a shortage of land in desirable locations.
Krugman is clearly right.
Paul Krugman looks at the trajectories of rental and buying, and sees appreciating in housing but basically none in rentals, which would not be the case if there were actually a shortage of land in desirable locations.
Krugman is clearly right.
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