That's because, in the places where housing is expensive, it's expensive because a _LOT_ of people want to live there. It's a pipe dream that you can out build demand in these places. Reducing prices of housing in nice places to live (by any means, including building) will only result in more demand up until that insatiable demand is satisfied.
Nice places to live can't support all the people that want to live there.
Because demand is, for all intents and purposes, insatiable, the dollar value of housing/property isn't based on supply and demand because supply can't practically be increased to affect demand. Instead, the price is related to what a prospective buyer can afford to pay _every month_ and, thus, is related to interest rates. Interest rates go down, prices go up to the point where a prospective buyer's mortgage payment would be the same.
People who bring up the (un)affordability of housing are never talking about Oklahoma, they're talking about the Bay Area, Southern California, New York City, Seattle, Portland, etc. All places that are so desirable, they can't practically support everyone that wants to live there.
> it's expensive because a _LOT_ of people want to live there.
I can't figure out how to make the math make sense even if I were to build a house in the middle of nowhere. Time and materials is the real killer.
Some day, when AI eliminates software development as a career, maybe you will be able to hire those people to build you houses for next to nothing, but right now I don't think it matters where or how many you build. The only way the average Joe is going to be able to afford one — at least until population decline fixes the problem naturally — is for someone else to take a huge loss on construction. And, well, who is going to line up to do that?
"Built in 1954" doesn't sound like new construction. Of course you can buy used houses at a fraction of the cost. That's nothing new. Maybe you missed it, but the discussion here about building new to make homes more affordable.
It is not like I'm homeless. I would be the one upgrading. Except I don't see how the numbers make sense.
You're right: The cost of new construction anchors the used market. Used housing is so expensive because new housing is even more expensive. If new houses were cheaper I, like many others, would have already have built one and my current home would be up for grabs at a lower price than I'd expect in the current reality. However, that's repeating what was already said.
If one was freely able to move about the entire world you may have a point. Especially given current events, I am not sure the country in which that house is located would take kindly to many of us moving there. In a more practical reality you're not going to find anything for anywhere close to that price even in the middle of nowhere, never mind somewhere where everyone wants to live. That is where earlier comments suggest building more housing would help.
Except it is not clear who can afford new construction either. It is even more expensive.
> That is where earlier comments suggest building more housing would help.
I explained earlier why I don't think it would. The places with a housing "shortages" are the places where everyone wants to live. Those places would have to build an impossible number of houses to affect demand.
You have people saying they can't afford housing and then, when you show them they can, they say, "not there..."
> Those places would have to build an impossible number of houses to affect demand.
If houses were able to be built freely then everyone would be able to build a house... Except, if you can't afford a used house, you most definitely cannot afford a new one. As before, time and materials are the real killer. The used housing market is merely a reflection of the cost to build new. Same reason used cars have risen so high in price in recent years: Because new cars have even higher prices.
> You have people saying they can't afford housing and then, when you show them they can, they say, "not there..."
The trouble is that you confuse affordability with sticker price. I technically could live in that house for six months before I have to return back to my home country, but I could not legally work during that time. It is far more affordable to pay significantly higher prices in my country for a house and work all year long. The price of that house is low, but the cost is very high.
The places everyone wants to live are the places everyone wants to live because they are the most affordable places to live. If it were cheaper to move somewhere else, the people would have moved there already. Humans love to chase a good deal and carve out an advantage for themselves. However, a low price doesn't mean cheaper.
Land is more or less worth the same whether it has a used house on it or if you build a new house on it. The trouble remains that the high cost of new construction anchors the cost of used houses.
Construction costs should really have been driven down by the march of technology, but that really hadn't been the case. It's mostly stagnant IIRC. But construction costs doesn't really explain the housing crisis well.
> Ok but this entire idea is very new. Its not an honest criticism to say no one has tried the new idea when they are actively doing it.
Not really new. Back in the day companies used to outsource their stuff to the lowest bidder agencies in proverbial Elbonia, never looked at the code, and then panickedly hired another agency when the things visibly were not what was ordered. Case studies are abound on TheDailyWTF for the last two decades.
Doing the same with agents will give you the same disastrous results for comparably the same money, just faster. Oh and you can't sue them, really.
Fair point on the Elbonia comparison. But we can't sue the SQLite maintainers either, and yet we trust them with basically everything. The reason is that open source developed its own trust mechanisms over decades. We don't have anything close to that with LLMs today. What those mechanisms might look like is an open question that is getting more important as AI generated code becomes more common.
> But we can't sue the SQLite maintainers either, and yet we trust them with basically everything.
But you don’t pay them any money and don’t enter into contractual relationship with them either. Thus you can’t sue them. Well, you can try, of course, but.
You could sue an Elbonian company, though, for contract breach. LLMs are like usual Elbonian quality with two middlemen but quicker, and you only have yourself to blame when they inevitably produce a disaster.
You surely mean the latency in its embedded terminal and not the code editor, right? I use VSCode’s remote SSH specifically so that code editing doesn’t suck. It really does not.
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