That is a grossly oversimplified model played with by children who call themselves economists. The real world is egregiously more complicated than economists admit. The law of supply and demand doesn’t even hold water. At best it’s an attempt to generalize from the idea that how hard a thing is to get is one of the many factors people use to determine how valuable it is.
In the real world a free market for real estate leads to a condition where one person owns all the real estate and lives like a king on rent (if they don’t literally end up becoming the king). The data shows that capital flows towards capital and individuals who already have it accumulate more. Of course with real individual freedom we’d either kill that person or just tell them to fuck off, we’re not paying. “Free markets” mean lots of laws that allow people who have property to keep it and determine what will be done with it, without any laws that make sure people who don’t have property can get by. We need to strike a balance that everyone can buy into, not leave the free market to create disaffected masses.
