> And pretty quickly, the highest tier is saturated and lower tier housing is built.
That’s definitely not what happens. Highest tier is saturated, developers say that “the market only wants highest tier housing”, and so more of the same gets built.
> Or higher tier housing is overbuilt and drives down costs of all tiers.
The opposite is what’s happening - the highest tier gets more and more expensive, and the lowest tier goes up too.
> That’s definitely not what happens. Highest tier is saturated, developers say that “the market only wants highest tier housing”, and so more of the same gets built.
If it's actually saturated, them prices will begin to drop.
> The opposite is what’s happening - the highest tier gets more and more expensive, and the lowest tier goes up too.
Because it's not actually overbuilt - they're still just trying to catch up. Most metro areas are still in a state of housing shortage.
That’s definitely not what happens. Highest tier is saturated, developers say that “the market only wants highest tier housing”, and so more of the same gets built.
> Or higher tier housing is overbuilt and drives down costs of all tiers.
The opposite is what’s happening - the highest tier gets more and more expensive, and the lowest tier goes up too.