1. the developer creates a "failure" in the capital market by preventing adequate feedback to capital: those that use the space cannot directly feedback to those that create it what they would be happy to pay more for. The housing market is organised like a centrally planned economy: the result is that consumers are being served bad products (car equivalent of Lada)
2. the creation of space could be much more efficient if it had a stable demand; this is possible once the demand aggregator is a long term supplier, rather than a project-based demand. In that context the creation of space will become a supply chain vs supply chain competition (as in every other industry) leading to re-organisation and optimisation: think lean, think electronic, think Apple.
Updated the link to Jonathan's syndicate: https://angel.co/jonathan-wasserstrum/syndicate
This is absolutely correct at so many level:
1. the developer creates a "failure" in the capital market by preventing adequate feedback to capital: those that use the space cannot directly feedback to those that create it what they would be happy to pay more for. The housing market is organised like a centrally planned economy: the result is that consumers are being served bad products (car equivalent of Lada)
2. the creation of space could be much more efficient if it had a stable demand; this is possible once the demand aggregator is a long term supplier, rather than a project-based demand. In that context the creation of space will become a supply chain vs supply chain competition (as in every other industry) leading to re-organisation and optimisation: think lean, think electronic, think Apple.
Society and consumers are the winner.
This was a great read! Wrote a response to it here: https://builtstuff.substack.com/p/3-what-vertical-integration-means