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> Build more and everyone will be happy...eventually. Except this still will not help due to the economic forces driving urbanization. Silicon Valley is a self
by endymi0n 10y ago
> Build more and everyone will be happy...eventually.
Except this still will not help due to the economic forces driving urbanization. Silicon Valley is a self-fulfilling prophecy and creating more supply will only help to drive more demand.
Every new person newly moving into a heavily urbanized area will drive 0.5 more persons wanting to go there due to new network and auxiliary jobs created (groceries, haircutter, ...). As more than 70% of our jobs are by now defined by interactions with other people, urban centers of excellence are doomed to grow.
This is why building new housing is only ever a short-term solution as well. The only long-term solution to urbanization and gentrification is making these areas less attractive by offering less jobs in a major area.
- selectodude 10y agoI'm going to go way out on a limb here and say that there aren't a literally infinite number of people that want to live in San Francisco. Case in point, me. I hate San Francisco and avoid going there whenever possible. QED.
- apsec112 10y ago"and creating more supply will only help to drive more demand." This is empirically false: https://dwtd9qkskt5ds.cloudfront.net/blog/wp-content/uploads/2014/05/Trulia_MiddleClassReport_Scatterplot2.png https://dwtd9qkskt5ds.cloudfront.net/blog/wp-content/uploads... http://blogs-images.forbes.com/trulia/files/2014/02/TruliaPriceMonitor_Scatterplot_Jan20141.png http://blogs-images.forbes.com/trulia/files/2014/02/TruliaPr...
- Atheros 10y agoYour charts don't prove him wrong. Your charts prove that prices are higher where houses are getting built, prices are low and where prices are high, houses aren't getting get built. Neither addresses changes in demand. (Price is not indicative of demand without considering supply.)