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Has LA cracked the code for building affordable housing?

benjaminschneider.substack.com

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Re: Has LA cracked the code for building affordable housing?

#151

Earlier quoted context omitted.

Imagine you spend half your working class life saving for an absolute shit hole for half a million, knowing it's an NFT that no one can build more of. Then permitting laws are liberalized and suddenly your NFT is worth no more than the labor and material cost to physically build the house, minus depreciation. It's difficult because losing that NFT means they are fucked in retirement. Oh well for them, stupid them for…

I hope it's clear that I'm not blaming the average person caught up in the housing market for the broader climate in which they live. It is fucked and I don't see a way out. If we build enough housing the price of their retirement asset drops and they are fucked and if we don't then we continue seeing mass homelessness and dropping birth rates. I don't have a solution, I'm commenting that the typical things that are…

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Re: Has LA cracked the code for building affordable housing?

#152
post #139

Earlier quoted context omitted.

Despite the uniformed nonsense you might read here, the most active NIMBYs aren't primarily motivated by property values. If you actually talk to them you'll find that they have no wish to ever sell and are worried (sometimes irrationally) about quality of life issues: noise, parking, traffic, crime, privacy, etc.

Tell me more about how they don't care about their property value they are simply trying to uphold the character of the neighborhood. Really the property owners and landlords are the victims here.

You misunderstand. Most of them aren't specifically concerned with neighborhood character. They are mostly long-term resident homeowners (not landlords) who don't want the hassle and annoyance that comes with higher density. If you want to counteract their efforts then at least understand their motivations instead of treating them like caracitures.

Re: Has LA cracked the code for building affordable housing?

#153
post #33

Earlier quoted context omitted.

That's not what I read from the article. Instead it seemed to be fairly arbitrary government regulations such as required shrubbery and facade articulation that make the cost of building prohibitively expensive. Now, you may be saying it's NIMBY for the LA government to require unnecessary (or mildly necessary) stuff to keep the neighborhoods beautiful, but it's I'd guess it's probably more "just because I can means…

I think the main point is the fast-tracking. Developers don't care if they need to add some landscaping to the whole thing, it just makes things more expensive in the end. What they care about is they don't want to start working on projects that then sit in drawers for years. Of course "LA cracked" nothing, because the construction industry is in absolute shambles. It basically regressed into this cutesy artisanal no…

> ugliest flimsiest Florida-grade paper-thin boxes

Is Florida-grade a thing? As far as I know, Florida is the only state where a majority (or plurality?) of single-family homes are built with CMU blocks, vs. the typical stick-framed construction.

Re: Has LA cracked the code for building affordable housing?

#154

Making things affordable in LA will be easy. Almost everyone I know is either in the process of leaving CA or planning on leaving. This includes everything from middle-class individuals to high-net-worth families, soon-to-retire and retired. Everyone is sick of the financially abusive environment in CA, at every level. And, of course, other issues. My wife and I are so sick of it that it has become an almost weekly c…

> There are a range of options, from other places in the US

> far more likely that the move will happen within the US

I don't know what you value in a place to live in, but many Southern and Midwestern states have much better fiscal and regulatory climates[0] and are full of midsized cities with surprisingly charming and walkable downtown areas. About the only thing you will not find is the delicious Mediterranean climate found in much of California.

[0]: https://www.freedominthe50states.org/

Re: Has LA cracked the code for building affordable housing?

#155
post #114

There is no code to crack. Just build more housing and it will become affordable. If it’s not affordable, you haven’t built enough yet. It’s crazy how these cities will try literally anything except building more housing.

Not necessarily. The housing market is very complex, and there is such a thing as induced demand - for example building lots more apartments in SF would make it even more attractive for e.g. tech companies to locate, and so they would quickly be filled, without moving the price.

Any data to support this hypothesis?

Re: Has LA cracked the code for building affordable housing?

#156
post #152

Earlier quoted context omitted.

Tell me more about how they don't care about their property value they are simply trying to uphold the character of the neighborhood. Really the property owners and landlords are the victims here.

You misunderstand. Most of them aren't specifically concerned with neighborhood character. They are mostly long-term resident homeowners (not landlords) who don't want the hassle and annoyance that comes with higher density. If you want to counteract their efforts then at least understand their motivations instead of treating them like caracitures.

At some point someone with authority just has to draw the line. Those people’s desires to not be hassled is not important, and the need for sufficient housing supply is.

Re: Has LA cracked the code for building affordable housing?

#157

Earlier quoted context omitted.

That's 646 square feet. That's 25'5"x25'5". For an urban area, that's plenty of space. That doesn't mean literally every apartment is that small, just that small and cheap apartments are available for those who want them, and American-sized apartments with American prices are also available for those who want to pay for them. That's one of the main reasons why housing is so expensive in the United States. We paternal…

> That's 646 square feet. That's 25'5"x25'5". For an urban area, that's plenty of space. It's not. And this is the total space, including the bathroom and the kitchen. > That doesn't mean literally every apartment is that small You are right, some are even smaller: https://www.nytimes.com/2022/10/03/business/tiny-apartments-... And all while just a hundred miles away, beautiful historical houses can be bought for lit…

30 million people in the Tokyo area would like to disagree with you, myself included. Why do you think those beautiful historical houses are laying there empty?

Re: Has LA cracked the code for building affordable housing?

#158
post #27

Or, seeing as how it's kind of important, we could subsidize building more housing.

You don't solve the problem of having more demand than supply by subsidizing demand. You solve it by making it legal to build housing. There is already plenty of monetary reward in building houses in places where housing is expensive; that's what it means for housing to be expensive.

Seriously. Greatly loosen the zoning laws, remove the ability for residents to block construction - this will all resolve itself

Re: Has LA cracked the code for building affordable housing?

#159
post #138

Making things affordable in LA will be easy. Almost everyone I know is either in the process of leaving CA or planning on leaving. This includes everything from middle-class individuals to high-net-worth families, soon-to-retire and retired. Everyone is sick of the financially abusive environment in CA, at every level. And, of course, other issues. My wife and I are so sick of it that it has become an almost weekly c…

I have long followed your work, on and off hn, for a couple years now. Huge respect. Before you consider Spain etc., please give the midwest a chance. Idealogically and workwise, you will find that Indiana, Ohio, Michigan strongly align with your values. You can pick any flagship university here and draw a circle with 20 mile radius. You will find plenty of manufacturing capital, cheap land, and a rooted workforce lo…

> I find the midwest much more supportive of my values and politics.

What's going on in the US is so disheartening, demoralizing and sad that I just don't know what to think any more. A society in the grips of destructive ideological forces, from our schools up through our media and government. We are headed straight for the "Argentina experience" and people seem to be too ignorant to understand it. Sad.

My wife is now actively engage in evaluating potential European destinations with a reasonable mix of quality of life and support for entrepreneurs. I was just in Zurich a few weeks ago and everything I learned was encouraging. I met with entrepreneurs doing non-trivial projects in Spain and learned about how the government is working hard to promote the kinds of things we should be doing in the US. The same is true of other locations in Europe. Not saying it is utopia, just saying they might be waking up to what has to be done to stay relevant in a global stage. They also seem to finally have understood how much of a mistake it was to allow uncontrolled migration into various nations. Something we still don't seem to grasp here.

I also spent time in North Carolina. Interesting. It does feel promising. Waco, TX is also an interesting ecosystem. If they had a high-speed train to Dallas it would almost be a no-brainer. Phoenix, AZ, also interesting. Although, now we get into potentially punishing weather.

I don't know. Frankly, I feel like the country I love and call home has fully bought into a plan for self destruction. OK, maybe I am being too dramatic. I'll concede this. And yet, we have a government that thinks nothing of letting ten million people come in when we did not create --and cannot create-- ten million new jobs for them, much less good jobs for everyone else who needed them before they came in. In a nation ruled by sanity, this kind of thing would not happen. How can anyone trust that we are going to behave rationally when this is the best we seem to be able to do?

And so, yeah, I am exhausted, sick, tired of this. Why continue to fight for a team that despises me as an entrepreneur? Why? Why does my government make me pay $30K per year in health insurance? Why do they create the conditions that cause my home insurance to go from $800 per year to over $7K per year? Why are we paying nearly $8K in car insurance for normal vehicles and no issues at all, instead of $500? Why do we pay hundreds of dollars per year in car registration when in other parts of the nation it's tens of dollars? Why is gasoline, I don't know, over $5 per gallon? Why are we paying insane amounts of taxes with every gallon of gasoline and the roads are shit compared to other places in the nation and other countries? Why have we allowed our society to become so violently abusive and divisive?

I don't know. All I know is that I've had enough. And, I don't know when or where, but we are pretty much decided we are not playing any more. I am starting another company and we've been talking to partners in the UK and Switzerland to see what might be possible. Next month I am going to spend two weeks in Argentina. Things are changing. I want to see what happens.

Anyhow, not a rosy comment. I know. Anyone honest and reasonably rational should conclude that the US has become a circus. This isn't how to stay a world leader at all. This is how you destroy a nation from the inside. That is the only thing we are doing well. Which is sad.

Lose enough entrepreneurs and we are done. I was astounded to learn just how many foreign companies are recipients of funding from the laughably-named "Inflation Reduction Act". It's a joke. The whole thing is a sad joke.

Re: Has LA cracked the code for building affordable housing?

#160

Making things affordable in LA will be easy. Almost everyone I know is either in the process of leaving CA or planning on leaving. This includes everything from middle-class individuals to high-net-worth families, soon-to-retire and retired. Everyone is sick of the financially abusive environment in CA, at every level. And, of course, other issues. My wife and I are so sick of it that it has become an almost weekly c…

> There are a range of options, from other places in the US > far more likely that the move will happen within the US I don't know what you value in a place to live in, but many Southern and Midwestern states have much better fiscal and regulatory climates[0] and are full of midsized cities with surprisingly charming and walkable downtown areas. About the only thing you will not find is the delicious Mediterranean cl…

> I don't know what you value in a place to live in

Sanity and reason would be a good starting point.

California is like dating a beautiful supermodel who is an horrible person. Everyone sees the outside and thinks "How lucky". Nobody know she the person she is inside that exterior.

It didn't use to be like this. There's only one reason it got this way, and that is the support of a putrid ideology that has, throughout history and across the world, destroyed everything it has touched. And here we are.

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