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Except higher-density buildings still equally price people out. There's no such thing as new urban apartments/condos that are cheaper than the houses they repla
by maxsilver 11y ago
Except higher-density buildings still equally price people out. There's no such thing as new urban apartments/condos that are cheaper than the houses they replaced.
A 500k house never gets torn down to become 3 400k condos. It becomes 3 600-800+k condos.
We should build more, because we need it. But "build more" can't be the only tool to lower prices, because simple observation shows us that it doesn't work.
- dkopi 11y agoYou can't judge pricing in a market that's very restrictive. Sprinkling a few higher density buildings in area with rapidly growing demand isn't going to be enough to lower prices.
- maxsilver 11y agoWhat about markets with no restrictions. Because this same behavior is seen there too, even in small cities in the south or Midwest. Even in cities that let developers do anything they want, anytime they want to.
- dkopi 11y agoIts very likely that a newer apartment would be priced higher than an older apartment. But that doesn't mean new apartments don't have an aggregate effect on the prices of other apartments. http://cityobservatory.org/in-some-cities-the-housing-construction-boom-is-starting-to-pay-off/ http://cityobservatory.org/in-some-cities-the-housing-constr...
- nostrademons 11y agoThere is if you take a step down on the housing ladder. Replacing a 1BR with a 3BR that you share with 2 roommates will reduce your rent. So will replacing a 2BR duplex with a 2BR apartment, usually. So will replacing a 3BR with a 2BR and having the kids double-up. ...which explains a lot about why residents dislike this
- dionidium 11y agosimple observation shows us that it doesn't work Quite the contrary. A pretty simple reductio proof demonstrates that more housing lowers prices. All you need is to imagine a market in which there is one more apartment available than there are people to rent it.
- mcguire 11y agoThere's also a simple proof that renters have near-infinite demand flexibility, so the prices can't go up. So....
- dionidium 11y agoI actually regret making that comment. We should be suspicious of logic-based arguments about topics for which there is actual evidence. We already know what it looks like when supply outpaces demand, because there are housing markets all over the rust belt where that's the case.
- mahyarm 11y agoNo, quite the opposite. A 500k house becomes 12 $250k 1000sqft condos is the actual math in SFH -> highrise conversion.
- ryandrake 11y agoMaybe in some other Bay Area, but not here. New construction in the SF Bay Area is almost always "luxury" townhouses and apartments.
- mahyarm 11y agoI always snort at what people call luxury in the bay area. 'luxury' here is the honda civic equivalent of new housing elsewhere in the USA. This is luxury housing: http://www.dailymail.co.uk/news/article-2793242/a-95million-view-inside-new-york-luxury-skyscraper-tallest-condo-western-hemisphere-1-396-feet.html http://www.dailymail.co.uk/news/article-2793242/a-95million-... I'm also surprised that you would still think the math does not apply. A 100 unit building taking up the space of 12 SFH $1.5mm homes will sell many more $800k 2 bedroom apartments comparing what houses and apartments sell for Build about 1000 of the buildings close to bart and muni tunnel stations and you would get 100'000 units for the price of 3000 SFH / in law units and a larger city budget to fund the new required transit system capacity.
- ryandrake 11y agoThat's why I put "luxury" in quotations. A "luxury" townhouse here is simply a very expensive tiny home, thrown together with cheap materials, faux-everything, bland interiors that look like generic hotel rooms, sometimes displaying a fake stone facade or arched entryway in an attempt to mimic class.