This is the article from 'Wall street journal' and about scarcity.
I bookmarked this site because the article relates to the 'scarcity' or shortages of land and labor. According to the survey from National Association of Home Builders, lots ready for construction remain in short supply, and that scarcity is among the chief factors hindering the housing recovery. The problem is that the increase in home prices has began to slow by some measures, and that could end up evocative builders who pay top dollar for the few lots now available. Builders buy lots based on their predictions and calculations of where home prices will be when the house is completed and sold. If home prices don't continue posting strong gains, builders likely cannot justify paying increasingly higher prices for lots. If lot prices are so high that buying the lots only makes sense if you assume continued home-price rises at a certain rate, then you really better be careful of what home prices you're assuming. Therefore, the most acute shortages are in the most desirable markets.
/ Andy's PJE 2013-15 SL Economics class/ Contents contributed and discussions participated by Sumin Y
This is the article from 'Wall street journal' and about scarcity.
I bookmarked this site because the article relates to the 'scarcity' or shortages of land and labor. According to the survey from National Association of Home Builders, lots ready for construction remain in short supply, and that scarcity is among the chief factors hindering the housing recovery. The problem is that the increase in home prices has began to slow by some measures, and that could end up evocative builders who pay top dollar for the few lots now available. Builders buy lots based on their predictions and calculations of where home prices will be when the house is completed and sold. If home prices don't continue posting strong gains, builders likely cannot justify paying increasingly higher prices for lots. If lot prices are so high that buying the lots only makes sense if you assume continued home-price rises at a certain rate, then you really better be careful of what home prices you're assuming. Therefore, the most acute shortages are in the most desirable markets.