No, they are not. The defining feature of a commodity is that it is interchangeable.
If you in Ontario try to charge me too much for a bushel of wheat, I’ll laugh and buy it from a guy in Saskatchewan selling it at a reasonable price instead. Makes no difference to me. The product is the same either way.
If I try to charge you too much for a house in Ontario, it would make no difference to you to move to Saskatchewan? I suspect not. They are not equivalent products. Living in the Ontario home will be a very different experience to living in the Saskatchewan home.
If housing were a commodity, a lot of our problems would be solved. But, housing is not. It even has a popular slogan to remind you of that fact: Location, location, location.
A commodity is defined by fungibility, and RE is fungible for the firms doing most of the buying and selling affecting prices - even if it isn’t so much for you or I.
No, they are not. The defining feature of a commodity is that it is interchangeable.
If you in Ontario try to charge me too much for a bushel of wheat, I’ll laugh and buy it from a guy in Saskatchewan selling it at a reasonable price instead. Makes no difference to me. The product is the same either way.
If I try to charge you too much for a house in Ontario, it would make no difference to you to move to Saskatchewan? I suspect not. They are not equivalent products. Living in the Ontario home will be a very different experience to living in the Saskatchewan home.
If housing were a commodity, a lot of our problems would be solved. But, housing is not. It even has a popular slogan to remind you of that fact: Location, location, location.
A commodity is defined by fungibility, and RE is fungible for the firms doing most of the buying and selling affecting prices - even if it isn’t so much for you or I.