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Bubble Trouble? - by Edward E. Leamer * Page - 12
Limitations on new housing may cause rents to increase at an abnormally high rate for a period of time, but that higher rate of growth of rents should quickly be "capitalized" in the price of the asset, once the market realizes the impact of supply restrictions on future rents. That means a one-time jump in price, and, thereafter, price appreciation like every other asset - up sometimes, and down sometimes.
* Edward E. Leamer, |
