"It’s a chart that almost perfectly predicts the San Francisco housing market using only three variables:
- The number of jobs located in San Francisco County.
- The number of places in San Francisco County for people to live.
- The total amount of money that is paid to everyone who works jobs in San Francisco County.”
It would have seemed like a good guess anyway withot the data to support it. It would be fascinating to see a similar analysis for other cities. In London we are gettin a lot of “it’s the fault of buy-to-let” and “it’s the fault of all those foreign investors” — but maybe it’s more simple!
I live in a town (city) just outside London where we are debeting destroying the rural areas (green belt) — part of the rationalisation of the need for more houses is to create more jobs for the people that live here — but this argues that it creates more demand and thereby keeps the prices high.