As a general rule, if you hold most of your wealth in diamonds, you do not want the market to be flooded with diamonds, Globe correspondent Kara Miller reports.
In fact, if you’re smart, you’ll oppose the exploration of any new diamond mines, and soon be rolling in money. Sure, a diamond shortage might be unwelcome news for starry-eyed couples seeking engagement rings. But it would be great news for you.
And that, in a nutshell, is the story of housing in this country.
“Outside of something like housing, we don’t allow incumbents who have a financial interest in restricting supply to restrict supply,” says Jenny Schuetz, an economist who studies housing at the Brookings Institute, a nonprofit public policy organization based in Washington, D.C. “And that’s exactly what we’re doing with homeownership.
Which has resulted, of course, in skyrocketing prices. In just the two years between 2019 and 2021, prices for single-family homes in Massachusetts surged nearly 28 percent.
So, how did the market for homes become so different from the market for almost anything else, from cars to pizza to watches?
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