It might make sense if a bunch of individual EAs buy real estate such that the overall portfolio is well-diversified.
Yeah, this is what I was trying to say. Perhaps I was unclear.
I don’t expect this to happen in practice, because EAs are geographically concentrated in a small number of cities, so if people own investment properties in the cities where they live, the overall EA real estate portfolio will be too concentrated in those cities.
EAs can diversify the overall EA real estate portfolio by thinking about where other EAs are likely to buy houses. E.g., they should avoid buying a house if they moved to an EA hub city, but they should buy (or avoid selling) a house in their hometown, especially if they come from a place that doesn’t have a lot of EAs.
In addition, buying houses in EA hub cities might be somewhat of a hedge against a change in living costs in those key locations, such that overweighting these could actually be more beneficial than harmful.
Anyway, all of this is a bit of a nitpick, I generally agree with the overall direction.
Yeah, this is what I was trying to say. Perhaps I was unclear.
EAs can diversify the overall EA real estate portfolio by thinking about where other EAs are likely to buy houses. E.g., they should avoid buying a house if they moved to an EA hub city, but they should buy (or avoid selling) a house in their hometown, especially if they come from a place that doesn’t have a lot of EAs.
In addition, buying houses in EA hub cities might be somewhat of a hedge against a change in living costs in those key locations, such that overweighting these could actually be more beneficial than harmful.
Anyway, all of this is a bit of a nitpick, I generally agree with the overall direction.