The end of the housing supply debate (maybe)
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The end of the housing supply debate (maybe)
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Re: The end of the housing supply debate (maybe)
#2TLDR Econ 101. Supply and demand is an immutable law.
Re: The end of the housing supply debate (maybe)
#3If you build new luxury housing presumably people now living in less desirable housing will upgrade, making their housing available at lower prices, etc.
Re: The end of the housing supply debate (maybe)
#4Interesting article. However:
"Rent increases, which were measured in the double digits eighteen months ago, have gone negative."
I call those kind of increases: decreases.
Re: The end of the housing supply debate (maybe)
#5If you build new luxury housing presumably people now living in less desirable housing will upgrade, making their housing available at lower prices, etc.
This claim keeps popping up. I’ve yet to see it include a citation. Maybe today will be different.
Re: The end of the housing supply debate (maybe)
#6That there was ever a debate at all is still astounding. Economics has fuzzy areas, but basic principles of supply and demand are very well-established. It's clearly nonsensical to imagine that we can simultaneously lower prices, limit supply, and allow for demand growth. The longevity of this bizarre idea demonstrates how strongly political ideas of how the world ought to work blind us to how the world does work. We'd do well to take the wool from our eyes in other contentious disputes.
Re: The end of the housing supply debate (maybe)
#7If you build new luxury housing presumably people now living in less desirable housing will upgrade, making their housing available at lower prices, etc.
This claim keeps popping up. I’ve yet to see it include a citation. Maybe today will be different.
It is called "filtering" and the process is well-established. http://faculty.maxwell.syr.edu/rosenthal/recent%20papers/Is_...
Re: The end of the housing supply debate (maybe)
#8If you build new luxury housing presumably people now living in less desirable housing will upgrade, making their housing available at lower prices, etc.
This claim keeps popping up. I’ve yet to see it include a citation. Maybe today will be different.
The article you're commenting on is literally the citation for this. Here's his citation, http://www.sightline.org/2017/09/21/yes-you-can-build-your-w...
Re: The end of the housing supply debate (maybe)
#9That there was ever a debate at all is still astounding. Economics has fuzzy areas, but basic principles of supply and demand are very well-established. It's clearly nonsensical to imagine that we can simultaneously lower prices, limit supply, and allow for demand growth. The longevity of this bizarre idea demonstrates how strongly political ideas of how the world ought to work blind us to how the world does work. We…
It is perplexing to me why the burden of proof was ever placed on "increasing supply decreases prices" when the mechanism by which rent control + limiting construction is supposed to benefit anyone besides those already occupying those units is totally unclear.
I don't even think it's "ought" vs "does" - it's more NIMBY interests being more ingrained into local politics allowing them to somehow gaslight everyone into thinking the laws of supply and demand don't apply to housing.
Re: The end of the housing supply debate (maybe)
#10If you build new luxury housing presumably people now living in less desirable housing will upgrade, making their housing available at lower prices, etc.
This claim keeps popping up. I’ve yet to see it include a citation. Maybe today will be different.
It’s in this very article.
What other outcome could happen?