Earlier quoted context omitted.
> Isn't the problem in SF that the wages have gone up hugely for a small subset of the population? Wages of the renting population is irrelevant to the 'fair economic price1' of an apartment. The equilibrium/fair cost of a latte doesn't go up because a few millionaires move into a neighborhood, it might go up because of a barista labor-shortage, a coffee bean-tariff, or other supply-side effect. You're not wrong that…
Well, it seems like you're making an assumption about the 'opportunity cost' of building/operating the apartment building, that it's grown far less than the wages. If your argument (that rental costs are too high) rests on that assumption, seems like it should be addressed and backed up. I am curious, though, about the artificial constraint you mentioned. Don't know what you're specifically referring to, would like t…
For fun, take a (google maps) walk around SF or downtown Oakland and count the single-family homes, parking lots, and vacant lots that, at least mechanically, could easily be turned into very profitable apartments - yet aren't.
> I am curious, though, about the artificial constraint you mentioned. Don't know what you're specifically referring to, would like to know more.
Restrictive zoning, planning commissions, NIMBYs, activist groups (historical societies, environmental groups,), onerous and vague regulations1 (that can be easily challenged in court.) for a few examples. All serve to both make development costs increase and project success uncertain.
1 e.g. Regulations should exist that require buildings to be earthquake safe (environmentally friendly, etc.), but said regulations should also provide concrete metrics to define 'earthquake safe' otherwise nothing stops lawsuits alleging a failure to properly design a building to be earthquake safe -- which costs a lot of money and time.