335 karma · joined July 15, 2017
I disagree. At least it shouldn't be that hard for a company with Twitter's level of engineering and data science sophistication, and yes, I do realize that most of their best technical talent is long gone.
This is obviously untrue. There isn't an infinite number of people wealthier than Gates or the Waltons or the Rothschilds. At some point there is no one further up the economic ladder in whatever location you're talking about.
>> You would force people to consume?
That's a complete misreading of the comment
Those $5M don't just get lit on fire. They transfer to some other set of people who can then decide what to do with it, and then onto some other set of people. Maybe the yacht's owner donates all proceeds to feed starving children.
They're welcome to. But they don't (or they haven't yet) because they see some benefit to staying versus the cost of leaving.
Hotels are actually really poorly positioned to fight Airbnb et al, since they face the huge capital costs of building/owning/maintaining giant buildings. Sure, they might win fights to change regulation or enforcement in some number of markets for some amount of time, but they'll never be able to spin supply up or down as nimbly as the marketplace platforms that don't own their own inventory.
To phrase it more glibly: "Necessity is the mother of invention."
Agree with your first sentence, but I quibble with this part. Demand for real estate is local, and defined as something resembling density: it's an intensity distributed over some area. That area is limited by development and infrastructure.
For example, you can alleviate the intensity of demand by widening the area in which those consumers can be satisfied. In other words, build more transportation that makes it more palatable to live further afield. The article even mentions it specifically: running the commuter shuttle to Gunnison more frequently eases the pain of living there and working in Crested Butte.