The point was that market value has very little to do with cost but is driven by intentionally limiting construction permits.
Out of the million euro that people have to pay to buy the 350 000 home very little goes towards building it.
The surplus of people looking to live someplace isn't an accident.
Now let us imagine what it is like running a pub. After subtracting the cost and the 5000 rent bill they probably have a sizable negative salary.
The point was that market value has very little to do with cost but is driven by intentionally limiting construction permits.
Out of the million euro that people have to pay to buy the 350 000 home very little goes towards building it.
The surplus of people looking to live someplace isn't an accident.
Now let us imagine what it is like running a pub. After subtracting the cost and the 5000 rent bill they probably have a sizable negative salary.