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Denver rent is back to 2022 prices after 20k new units hit the market

denverite.com

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Re: Denver rent is back to 2022 prices after 20k new units hit the market

#51

Post by tokioyoyo »

JumpCrisscross wrote: post #19
throwmeaway222 wrote: post #14

yeah well, the last time things were affordable the price was 1200. 71 dollars off 1850 isn't going to do anything

> 71 dollars off 1850 isn't going to do anything The point is the modern urban economic illiteracy that pretends supply and demand don't exist in housing (except when it comes to short-term rental stock, in which case it magically reappears) is wrong. Our housing crisis is a supply-side problem.

It’s a supply-side problem, but with majority of people being either indifferent to the problem or against downward pressure on the housing prices (most people don’t rent). The prices have skyrocketed, and most people who bought in the last 5 years wouldn’t want their assets to depreciate, if they spent 500K+ on it.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#52

Post by elictronic »

hangonhn wrote: post #25
koolba wrote: post #4

Earlier quoted context omitted.

Someone should try this with medicine. Instead of subsidizing insurance (demand side), let’s spend the money to bring doctors to the USA from all over the world and have them work in free clinics (supply side).

You basically can’t or it won't have the same effects because medicine doesn’t really follow the same dynamics as most other markets: the supplier (doctor) has an information asymmetry and thus makes most of the decisions, while the buyer (patient) is not usually the payer (insurance) so aren’t really incentivized to save. Kenneth Arrow famously analyzed the healthcare market and made the above insight: https://asset…

He said free clinics.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#54

Post by JumpCrisscross »

aynyc wrote: post #33

Just because this doesn’t magically solve the housing crisis, doesn’t mean it’s not a good start. We have to stop looking at magical solutions that will solve all our problems in one shot. We have to start somewhere.

> because this doesn’t magically solve the housing crisis

It does. Twenty thousand units represent about 5% of Denver's housing stock [1]. Commit to adding this many units to the housing stock every year for the next 10 years and you'll have solved the housing crisis. (You'll probably need to bail out recent homebuyers, who will be permanently underwater, but that's a separate issue.)

[1] http://censusreporter.org/profiles/16000US0820000-denver-co/

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#55

Post by MangoToupe »

jeffbee wrote: post #45
MangoToupe wrote: post #13

It's a nice victory story for the YIMBYs hoping to win over the upper-/middle class trying to retain the narrative that the market will provide "affordable" housing (not what this even demonstrates, but anyway), but this isn't going to get people off the street. We need a public housing sector to appropriately meet everyone's needs. Otherwise this is just a game of justifying "who deserves housing", a discussion over…

Lowering the rent stops people from becoming homeless which is a necessary element of ending homelessness.

> Lowering the rent stops people from becoming homeless which is a necessary element of ending homelessness.

Sure but by this reasoning you could justify any effort as sufficient. At some point you have to make the personal judgement on what effort is enough. I don't really see any effort focusing on anything short of homelessness as worth the oxygen in the room it consumes.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#56

Post by dang »

Giorgi wrote: post #20

[flagged]

Could you please stop posting unsubstantive comments and flamebait? You've unfortunately been doing it repeatedly. It's not what this site is for, and destroys what it is for.

If you wouldn't mind reviewing https://news.ycombinator.com/newsguidelines.html and taking the intended spirit of the site more to heart, we'd be grateful. They include:

"Don't be snarky."

"Eschew flamebait. Avoid generic tangents."

"Please respond to the strongest plausible interpretation of what someone says, not a weaker one that's easier to criticize. Assume good faith."

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#57

Post by MangoToupe »

next_xibalba wrote: post #29
MangoToupe wrote: post #13

It's a nice victory story for the YIMBYs hoping to win over the upper-/middle class trying to retain the narrative that the market will provide "affordable" housing (not what this even demonstrates, but anyway), but this isn't going to get people off the street. We need a public housing sector to appropriately meet everyone's needs. Otherwise this is just a game of justifying "who deserves housing", a discussion over…

So you're telling me if an additional, say, 100k units came on the market in Denver in the next year, housing prices wouldn't fall dramatically such that all working people could afford housing? Working people should be able to afford housing near where they work. So let's press the gas pedal on building. The mentally ill and drug addicted should be subject to mandatory treatment or jail until such time as their unde…

> all working people could afford housing?

Hey, if that's the metric you're pushing for, good for you. I'm pushing for housing as a human right. I never caught the calvinist bug of "torture the non-productive until they conform and perform" method of population management.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#58

Post by JumpCrisscross »

staringback wrote: post #38
JKCalhoun wrote: post #21

Is it wrong of me to be sad that it's rent and not home prices?

Not wrong at all. Previously owner-occupied single family homes will continue to be bulldozed and replaced with 8 story wooden boxes, owned by national corporate landlords of course.

> single family homes will continue to be bulldozed and replaced with 8 story wooden boxes, owned by national corporate landlords of course

Source? Why of course?

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#59

Post by vlakreeh »

Giorgi wrote: post #20

[flagged]

This is not a solution. The average rent is still $1832, which is still unaffordable for people in Denver making the median income of $54.3k if you apply the rule of thumb where rent shouldn't exceed 30% of your monthly income.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#60

Post by JumpCrisscross »

tokioyoyo wrote: post #51
JumpCrisscross wrote: post #19

Earlier quoted context omitted.

> 71 dollars off 1850 isn't going to do anything The point is the modern urban economic illiteracy that pretends supply and demand don't exist in housing (except when it comes to short-term rental stock, in which case it magically reappears) is wrong. Our housing crisis is a supply-side problem.

It’s a supply-side problem, but with majority of people being either indifferent to the problem or against downward pressure on the housing prices (most people don’t rent). The prices have skyrocketed, and most people who bought in the last 5 years wouldn’t want their assets to depreciate, if they spent 500K+ on it.

> most people who bought in the last 5 years wouldn’t want their assets to depreciate, if they spent 500K+ on it

If they spent any amount on it. The long-run equilibrium is managing housing prices like the Fed, with a commitment to building enough to keep median real home prices flat. (I'd argue for a one-time adustment to pre-Covid levels. But that's arguably an arbitrary threshold.)

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