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Growing at 10% instead of 20% is still "a negative effect".

"That which is not seen" and all that...



What evidence is there that growth would increase in the areas with high housing prices if the housing prices were lower?


Less deadweight loss in the form of rent, and more towards people doing productive things is one completely obvious one.


I asked for evidence, not what seems obvious.

I already addressed this in my original post. It seems obvious that the displacement of workers would hurt the economy. However, it does not seem to actually happen -- the cities with the highest housing prices have the highest growth of any cities in the world.


I think the causation goes the other way: Cities with high growth get high housing prices because people want to move to cities with high growth.





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