Earlier quoted context omitted.
You're too focused on money and you may be misunderstanding my point. Price is always based on supply and demand so the nicest house is going to command the same price on the open market regardless how nice it is. The same is true for low end housing. Keep in mind its production which improves peoples life. Money is just a tool to help an economy function. Think of it like a hockey team. If your 4th line Center isn't…
Price is determined by more than just supply and demand. The price demanded is determined partially by scarcity and partially by the wealth required to create a good. The math says you fix housing affordability by building more mansions. Poor people can't afford them and the actual price change is so small for the massive investment that its insane. Building enough to push 250k houses to 200k would cost more money th…
"scarcity" being supply, and "wealth" being supply of money which translates to demand for housing. "demand" is people's willingness to purchase something.
> Building enough to push 250k houses to 200k would cost more money than the entire GDP and poor people still couldn't make the down payment.
You have it exactly backwards. Like I say, you're too focused on the literal cost. 250k vs 200k is entirely based on supply and demand.
Lets say we want low income people to be able to afford 2 bedroom 1k sq/ft apartments. To achieve that we need to build more 3-5 bedroom 2k sq/ft places. The wealthy will want the nicer apartments which reduces demand for the 2 bedroom place and that's how they become affordable.