Have you ever wondered what the price #housing under a Bitcoin standard would be ? ποΈ
#RealEstate prices will ultimately depend on supply and demand. If people are willing to pay a premium for location, etc., they will. Deviation from the average will be the natural result of market forces.
Overall, price movements of housing will become more closely tracked to population changes and scarcity of land. Right now land scarcity is artificial due to government regulations (zoning laws).
It is likely that regulations will continue to exist as municipalities and similar entities are interested in creating a particular building appearance, but they are unlikely to be as restrictive as they are today.
In general, housing would be cheaper because the level of financialisation would be much lower, as people can save in bitcoin (by default) and not have to invest to compensate for inflation. Plus, deflation would make it cheaper over time. π«
Demand for real estate investment loans would also decrease as people can save in bitcoin.
By functioning as an actual store of value, bitcoin will most likely absorb the monetary premium that real estate has accumulated over decades of monetary inflation and housing will collapse to its utility value. This would change the home buying experience. π
Much of the current financial infrastructure surrounding real estate, including brokers, will become less important and partially disappear.
When buying a house, rent should be considered as an opportunity cost, because the opportunity cost of owning a house to live in is that it canβt be rented out to generate additional income. π§‘β‘
