Earlier quoted context omitted.
No, homeless people are not everywhere. Homelessness is created by high rents. High rents are created by high local productivity. The people who are productive enough to make it over the rent-bar are housed, and their marginal productivity above the rent-bar serves to raise the rent-bar (talk to any landlord about how they set rent prices: it's the local wages, stupid). This then pushes a greater proportion of people…
> High rents are created by high local productivity. Wrong. High rents have many reasons and also good policies to get them down and have affordable housing for more people, also in otherwise expensive and popular cities.
Rents cannot (at meaningful scale) exceed local productivity, or else there will be widespread vacancies and landlords will reduce their rents.
Rents cannot (at meaningful scale) fall below local productivity, or else landlords will simply raise their rents.
Go talk to a landlord about how they site prices.
Step 1. Look up income of your target demographic
Step 2. Eat 30% of their income
Can you show me a place with high local productivity and low rent?
Can you show me a place with high rent and low local productivity (that's not e.g. a vacation destination for people with high productivity elsewhere)?
You can certainly artificially suppress prices with rent control. But that just gets fed back into the system in the form of reduced supply, so it ends up raising rents on the non-controlled housing stock anyway.