The increase in value of a house is almost entirely due to scarcity. The house exists in a place where more and more people want to live, so only those who are able to out-pay others are able to get the desirable houses. As the saying goes, the three most important things about real-estate are location, location, and location. Any place desirable enough for people to want to move there will soon become expensive enough to prevent many people from being able to afford to move there.
Housing appreciation, more than almost anything else, is part of the economy which "grows" in value without producing anything: more money goes into the system, but only to the relatively well-off. Tax write-offs magnify this effect - giving even more money to the already well-off.
It is odd to think of increasing the demand for something without producing any new goods or services that can be exchanged - this seems to be tied directly to inflation and inequality.
There must be a magic solution to cramming millions of people into a place where they can all walk to work, have good schools, and be otherwise happy and healthy.
Housing appreciation, more than almost anything else, is part of the economy which "grows" in value without producing anything: more money goes into the system, but only to the relatively well-off. Tax write-offs magnify this effect - giving even more money to the already well-off.
It is odd to think of increasing the demand for something without producing any new goods or services that can be exchanged - this seems to be tied directly to inflation and inequality.
There must be a magic solution to cramming millions of people into a place where they can all walk to work, have good schools, and be otherwise happy and healthy.
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