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Why not let the market decide what needs to be built? Edit: Built too many luxury apartments and those come down I price and are the new middle class apartment
by ajmurmann 10y ago
Why not let the market decide what needs to be built?
Edit: Built too many luxury apartments and those come down I price and are the new middle class apartments. It's the developers loss. Built tons of tenements and either people are happy over cheap housing out no one moves in and they get upgraded or even cheaper. It's magical!
- metaphorm 10y agobecause the market is dysfunctional, for many different reasons. did you read the original article? it describes some of that dysfunction.
- ajmurmann 10y agoYeah, apparently "skinny towers" and "boxy apartments" are for some reason undesirable.
- PeterisP 10y agoThe original article describes dysfunction caused by regulations, that would improve overnight by market actors simply it wasn't forbidden.
- metaphorm 10y agosome of the regulations are necessary and important. others of them are corruption of the system by (literally) rent-seekers trying to protect their incumbent positions. sorting that out is no easy task. saying "that would improve overnight" sounds like an embrace of oversimplification, which I think is an inappropriate position for an issue like this with so much complexity and uncertainty.
- tangent128 10y agoOr surplus luxury apartments simply go unoccupied, being used as stores of value.
- ajmurmann 10y agoYeah, I know about that from other articles. That sounds like a inefficiency that will resolve itself as that market gets saturated and these apartments go down in price. They will be much less attractive investments then. If you prohibit the market from going its course they will remain empty.
- popmystack 10y agoI will never understand how this passes for reasonable thought. It's totally unscientific, proven to not actually happen after nearly two centuries of various policies. "It'll fix itself" is not and never will be the answer.