the house price problem

ninky_2

Blacklight wrote: »

I'd have to agree with Really2 on this, if Venice were the size necessary to cater for everyone who wanted to live there (size of Manchester perhaps, who knows...) then prices would not be as high as they are.

Maybe there's a case for desirability based on the fact that the place is so small, but then the same argument could be applied to the UK as a whole.

well i don't agree because then everywhere that was small that had more people wanting to live there than could afford to would cost the same as venice. it is the unique architecture etc of venice and the people with lots of money that attracts that make it so expensive.

why do more people want to live in venice rather than warsaw for example? it's not because of the limited supply of property. if you had a venice and a warsaw side by side with equal amounts of property one would still end up costing more than the other. desirability creates demand beyond need. the uk does not 'need' more houses but some people might 'desire' certain areas more than others.