TechTeacher

Let me try again - the market is like a giant price discovery system. Current prices - like rent cost - reflect how much money people have and how supply/demand intersect. Higher prices signal to the market that it’s worth it to invest even if it takes awhile and costs more to build a building - that it’s worth using money to make more and better buildings, vs other uses for that capital. A cap distorts prices - basically the cap lies to the market mechanism and says “actually it’s not so profitable, don’t invest”. It also makes the assets worth less, so those who own buildings have less free capital to make more… and less people want to be involved in the asset class for a career. Thus, fewer talented ppl end up fixing up buildings or work to figure out how to create more supply. Markets are powerful mechanisms that signal to our society what to work on and where to put resources - and it’s dangerous to break them and create the wrong signals.

They say coding is for everyone. What are your thoughts on this?