People don’t understand how market forces work, and that is true on both the left AND the right. The price of anything: food, houses, cars, even your labor is set by market forces.
Michael Jordan got paid what he was paid for two reasons: no one else could play basketball at the level he played the game. The pool of talented basketball players was very small- there are less than 600 people in the entire country that can play basketball at an NBA level, and Jordan was the only person playing at the level he was playing at. So there is your supply- very limited.
The demand for him was huge- people wanted to watch the man do what he did, and they wanted to be like him so much that they bought millions of shoes simply because Nike put his name on them. That is your demand.
The same is true for houses, cars, food, or anything else for that matter. Right now, my wife wants to buy a car. She has her mind set on a specific car, and is very particular about what she wants. She wants a Lexus TX350 AWD with the Luxury trim package, a dark outside color, and any interior that isn’t white. Guess what? Demand for that vehicle is so high, the dealers are selling them sight unseen before they even arrive from the factory. You can’t special order them, because the factory is so busy trying to meet demand, that they don’t have the capacity to do custom orders. Because demand is so high, dealers charge sticker price, take it or leave it. If you don’t like it, go buy something else, but make no mistake, as long as the Lexus vehicles are selling so quickly, you won’t see deals or reductions in price.
Apply the same to houses- people want to buy houses, and the demand curve is being altered by large investors buying thousands of homes to use as rentals. Demand is high, so prices climb. Why are investors buying so many rentals? Because demand there is pushing rental rates to climb, because so many illegals have entered the country, and they all need places to live.
So more illegals= more renters. More renters=higher demand and increased rental prices. That equals more profits, which draws in more investors to meet that demand. Those investors are buying themselves rental property, which is causing a decrease in supply for homes, and here we are.
5 Comments
juvat · January 12, 2026 at 1:12 pm
Hadn’t thought of that, but makes sense. Thanks
juvat
Honk Honk · January 12, 2026 at 1:46 pm
Reading about the glorious peoples republic of California (CPUSA) losing gas stations, Coca-Cola plants and truckers.
Taking care of lifetime CPUSA (D) dependents ain’t cheap.
At least they have High Speed Rail which goes honk honk.
Rick T · January 12, 2026 at 3:28 pm
And when price and supply are not set by market forces you get higher prices, shortages, price-gouging, and black markets. The end state usually includes special markets and prices for insiders the run of the mill peasant is barred from.
Southernborne · January 12, 2026 at 4:48 pm
Yes and add in the government paying rent for those freeloaders.
Danny · January 12, 2026 at 5:29 pm
A lot of people do not get it.
Like your wife, I want a Lexus. But I want the IS 500 F – a high performance sedan. 70 grand at the local dealership. Makes me salivate AND – it’s the last of that model because Lexus has discontinued them. Doubt there will be any deals. I’m not sure what the demand is though – maybe there would be a little room.
That’s beaucoup bucks though.