21–30 of 126 posts
I think a lot of the opposition revolves around frustration with developers building luxury when the intent of the given policy was low or mid market units, combined with a belief that units targeted at the needy market segment would be the best solution.
That 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…
Would you agree that a speculative boom can cause an increase in demand?
That 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…
I don't think it ever truly was a debate over supply effects. I think the true debate is whether people agree or disagree on the desirability of more housing, and the "more supply won't help" argument was coopted by those who needed a more palatable argument than straight NIMBYism.
Earlier quoted context omitted.
The ones who occupy the residences have the votes...
Don't renters also have votes? If so then it's a matter of ratio and willingness to mobilize/fund efforts.
If 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.
Earlier quoted context omitted.
The ones who occupy the residences have the votes...
Don't renters also have votes? If so then it's a matter of ratio and willingness to mobilize/fund efforts.
That 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…
Forget about housing for a minute. Would you agree that a speculative boom can cause an increase in demand?
There are other forces at play here too such as foreign buyers speculating on the Manhattan Condo market, look no further then the foreclosure at One57 penthouse to show how it has gotten. I think building more housing at all levels is the best way to solve the affordability crisis, but naturally the higher-end of the market would be built out first due to developers wanting to cater to the highest bidder. The cities current approach of providing tax-incentives to developers to allot a certain portion of housing to affordable housing is seemingly a good strategy to tackle the problem of affordable housing as well as integration.
Earlier quoted context omitted.
Forget about housing for a minute. Would you agree that a speculative boom can cause an increase in demand?
The best way to end a speculative bubble is to crash the price by increasing supply.
My point is that, if a particular housing market is experiencing a shortage of supply due to a speculative boom, but has sufficient housing to actually house people, then you have two options: tackle the supply side by building more houses, or tackle the demand side by addressing the cause of the speculation (e.g. tax incentives could be encouraging this non-productive, speculative investment).
That 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…
Forget about housing for a minute. Would you agree that a speculative boom can cause an increase in demand?