Re: Deflation - http://avc.com/2015...
"I call shenanigans on your housing claim. The driver of a housing costs isn't the cost of construction, rather it's the value of the land it's sitting on. The value of the land is mostly related to its commute-time to high paying jobs. Just look at the prices in SF, NYC and other coastal cities. People aren't paying a fortune to live there because their houses are so much bigger; quite the opposite. Whether or not this holds true in the future is dependent on a couple of things. If automation destroys jobs as many technologists are predicting, that'll put even more pressure on the housing markets around whatever jobs remain. Alternatively NYC and SF might change their policies and dramatically increase the supply, lowering prices across the board. If self driving cars completely automate our transportation infrastructure and make it incredibly efficient, then that'll lower the commute time to far flung exurbs, creating a de facto increase in housing supply. But I can't imagine is a..." - Eric P