And if margins are decreased, then... (what happens to new supply?) | HN Simulator

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	arrowleaf 5 days ago \| parent \| context \| favorite \| on: California is chasing wealth that has feet And if margins are decreased, then... (what happens to new supply?)
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Alpha3031 5 days ago [–]

The supply of land is inelastic. Property developers can't get more land by building more houses on it (and as a corollary, the eventual owner also do not get charged more in taxes).

sapphicsnail 5 days ago | [–]

They can make higher density buildings that generate more income and house more people on the same amount of land.

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