Earlier quoted context omitted.
What makes houses in developed countries so expensive? I live in Kazakhstan. I can buy some land near city, it would cost me $5-10k for 100 sq. meters of land. I can build my own house for $40-80k (including materials and workers). It might not be the huge house, but it will be fine to live in. Is land more expensive in developed countries? Are materials more expensive? Are workers more expensive? (probably all compo…
Supply and demand. Kazakhstan has a population density one hundredth that of the UK.
How cheaper housing can boost productivity
41–50 of 62 posts
Re: How cheaper housing can boost productivity
#42Earlier quoted context omitted.
I don't know why there's such "new-urbanist lobby" in the US, but in Europe you can't realize the dream of "open-road commuting" and low-density employment, not without turning the entire continent into one big suburbia. I don't think we have enough land for that. I'm personally for public transit because of efficiency. Even if you could somehow get that "old low-density promise of commuting 20 or 30 minutes on open…
The UK has 26.7M households in 243,610km^2. That's nearly a hectare per household -- doesn't sound "suburban" to me (although maybe some parts of the US would disagree!). Of course, the UK population is very unevenly distributed at the moment...
I've heard some calculations that in theory you could have all 7 billion people living comfortably on 50% of the land while the other 50% could go to agriculture, industry, forestation, etc. but that would require geoengineering on an unprecedented scale, not to mention being very energy inefficient.
Re: How cheaper housing can boost productivity
#43http://bankunderground.co.uk/2015/06/30/banks-are-not-interm...
> the key function of banks is the provision of financing, meaning the creation of new monetary purchasing power through loans, for a single agent that is both borrower and depositor. Specifically, whenever a bank makes a new loan to a non-bank customer X, it creates a new loan entry in the name of customer X on the asset side of its balance sheet, and it simultaneously creates a new and equal-sized deposit entry, also in the name of customer X, on the liability side of its balance sheet. The bank therefore creates its own funding, deposits, through lending. It does so through a pure bookkeeping transaction that involves no real resources, and that acquires its economic significance through the fact that bank deposits are any modern economy’s generally accepted medium of exchange.
Banks create money and lend it against land. This is how western "economies" create money which we then label "growth".
The more productive we become the more the landlord takes.
Re: How cheaper housing can boost productivity
#44Earlier quoted context omitted.
What makes houses in developed countries so expensive? I live in Kazakhstan. I can buy some land near city, it would cost me $5-10k for 100 sq. meters of land. I can build my own house for $40-80k (including materials and workers). It might not be the huge house, but it will be fine to live in. Is land more expensive in developed countries? Are materials more expensive? Are workers more expensive? (probably all compo…
Land with planning permission , in desireable areas, is very expensive. Random example from near me: http://www.plotfinder.net/plot/land-sale-city-edinburgh-situ... - that's just over $100k. More stringent building regulations probably add to the cost, but the planning system is the big factor. "Desireable area" makes a difference in some cases: a while ago Stoke-on-Trent were selling derelict houses at £1 to anyone…
Re: How cheaper housing can boost productivity
#45Earlier quoted context omitted.
> You can have too loose construction law, and the result is a city centre were nobody lives - people just commute to work and back. It's not that Poland (or any other country) needs more laws. It's a problem of incentives, or lack thereof. If a construction company has bribed politicians to keep giving them lucrative gigs on other people's money, they will have no incentive to actually do a good job. If, on the othe…
I don't think the corruption is the main problem here. Nobody pays bribes to paint their commie block in fuchsia-green stripes (it's a thing here, I guess because of 50 years of shades of gray everywhere). Or to put 20-meter tall billboard on their small plot in front of XIII-th century castle. Or to build "Mountainer style one-family-house" between 16th century tenament houses. With huge brick wall all over it, and…
Do you think you need a law that says "construction companies must build sturdy, reliable, good-looking buildings in good taste, or else!" .. ?
Do you think everything would be fine then?
Re: How cheaper housing can boost productivity
#46Earlier quoted context omitted.
I don't think the corruption is the main problem here. Nobody pays bribes to paint their commie block in fuchsia-green stripes (it's a thing here, I guess because of 50 years of shades of gray everywhere). Or to put 20-meter tall billboard on their small plot in front of XIII-th century castle. Or to build "Mountainer style one-family-house" between 16th century tenament houses. With huge brick wall all over it, and…
You seem to be describing the results of shitty construction companies getting gigs even though they produce shitty, "chaotic" results. But you somehow don't think it's because of "corruption" anyway? Do you think you need a law that says "construction companies must build sturdy, reliable, good-looking buildings in good taste, or else!" .. ? Do you think everything would be fine then?
My examples were of people building or "upgrading" their houses by themselves and covering them in billboards. No developer or corruption needed. They have the right to do that - it pays (or it satisfies their needs) so they do that. Externalities be damned.
Sure, there is some corruption, but that's irrelvant, if there was law forbidding building malls with huge parking lots in a historic center there would be no malls and parking lots there, no matter the amount of corruption. Law isn't outright broken, just the corner cases are abused, and law covers very little of what it should.
> Do you think you need a law that says "construction companies must build sturdy, reliable, good-looking buildings in good taste, or else!" .. ?
There is no problem with "sturdiness". It's in the law, and people obey. The winter/summer cycle here ensures people don't skimp on good quality.
I think there should be law specifying which kind of buildings should be build in which region. Incliding details like "which kind of roof", "how high", etc. There's nothing wrong with one-family housing, but the kind of fence you can use should be specified. Otherways people build 3-meters-high solid walls to have village in the midle of city.
There should be ban on huge billboards in the city center. It's not some evil corporations donig it, it's small few-person or family companies. They are engaged in spiraling war for attention, covering cities with bigger and bigger ads. It's out of control, like banners on early '00s internet. And there's no adblock for brain.
Re: How cheaper housing can boost productivity
#47Re: How cheaper housing can boost productivity
#48It's funny how HN people are all like "capitalism is awesome!" and then they complain when housing prices are high.
The high prices come from government intervention dude. Good job making yourself look like an uneducated fool. > A ceiling on rents reduces the quantity and quality of housing available. (93% of economists agree) http://gregmankiw.blogspot.de/2009/02/news-flash-economists-...
Re: How cheaper housing can boost productivity
#49Earlier quoted context omitted.
You seem to be describing the results of shitty construction companies getting gigs even though they produce shitty, "chaotic" results. But you somehow don't think it's because of "corruption" anyway? Do you think you need a law that says "construction companies must build sturdy, reliable, good-looking buildings in good taste, or else!" .. ? Do you think everything would be fine then?
> You seem to be describing the results of shitty construction companies getting gigs even though they produce shitty, "chaotic" results. My examples were of people building or "upgrading" their houses by themselves and covering them in billboards. No developer or corruption needed. They have the right to do that - it pays (or it satisfies their needs) so they do that. Externalities be damned. Sure, there is some cor…
How could it possibly be irrelevant? We're talking about countless millions of dollars (over time) of other people's money being used here. Why would anyone work hard to get himself into a position to decide who gets it, if there was nothing in it for him?
You want more regulation, but what exactly do you want the laws to say? If there's no problem with quality, what is the problem?
If the problem is just that you personally don't like X, Y and Z, then there is no real problem.
Re: How cheaper housing can boost productivity
#50Earlier quoted context omitted.
Land with planning permission , in desireable areas, is very expensive. Random example from near me: http://www.plotfinder.net/plot/land-sale-city-edinburgh-situ... - that's just over $100k. More stringent building regulations probably add to the cost, but the planning system is the big factor. "Desireable area" makes a difference in some cases: a while ago Stoke-on-Trent were selling derelict houses at £1 to anyone…
Planning permission is how the establishment introduce artificial scarcity.