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Feel like I’m missing something very basic about housing markets. Why are roughly similar properties like 3x-6x more expensive in coastal cities? My guess is big cities have more stable economic prospects on 30-year horizons, so lower risk.
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Artificial caps on supply through mechanisms like de facto apartment bans (single family zoning) in areas that have experienced a lot of job growth.
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Coastal cities tend to be more international and therefore culturally more varied and exciting as melting pots. (This is likely changing now that travel by sea is less popular). But it established infra for industries and culture centers over many years and is a huge draw now.
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Housing is VERY price inelastic. Everybody needs a house So price changes for supply vs demand are amplified relative to our normal intuitions. And coastal cities have regulatory regimes that dramatically suppress housing supply (zoning, vetoes, uncertainty, delay). 6x price
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