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> '“Now you have Caucasians moving back into the community, you have Facebookers and Googlers and Yahooers,” said Pastor Paul Bains, a local leader. “That’s wha

> '“Now you have Caucasians moving back into the community, you have Facebookers and Googlers and Yahooers,” said Pastor Paul Bains, a local leader. “That’s what’s driven the cost back up. Before, houses were rarely over $500,000. And now, can you find one under $750,000? You probably could, but it’s a rare find.”'' It's a pity that they don't teach journalists how to think. The problems in housing shortage and increase in housing prices is because of zoning density restrictions, not that more people are moving into the neighborhood. These zoning density restrictions are a market inefficiency called "rent-seeking" which uses politics to give a special interest group, in this case landlords and existing home owners a portion of unearned wealth over tenants and home buyers. The proper fix is to pass laws that prohibit the zoning density restrictions or that reverse the "rent-seeking" laws. One gets tired of journalist writing these kinds of stories without citing the reasons and the fix. Where I live in NYC, many of those on the left claim that they want affordable housing and want people to have an affordable wage (or lower housing costs in order to make the wage they earn go farther), yet they are for laws that limit zoning density. This phenomenon zoning density restrictions related to affordable housing is written about by many, but here is a good article by Harvard Economist Edward Glaeser who is an expert on cities. Build Big, Bill http://www.nydailynews.com/opinion/build-big-bill-article-1.1913739 http://www.nydailynews.com/opinion/build-big-bill-article-1....

throwaway5752 10y ago
"It's a pity that they don't teach journalists how to think" It's a pity that you can't humbly disagree with someone over a differing opinion, rather than framing them as ignorant and unaware of some basic truth that you're privy to. It's not just off-putting, but it's also inaccurate. Your feeling on "rent-seeking" and zoning policy are hardly universal, and there are many scholars that have written alternative views on the subject.
- davidf18 10y ago
  > "Your feeling on "rent-seeking" and zoning policy are hardly universal, and there are many scholars that have written alternative views on the subject." Please cite your sources. The rent-seeking is one of 3 forms of microeconomic market inefficiencies (the others are [negative] externalities and information asymmetry). Prices rise because of scarcity. Zoning density restrictions causes scarcity. "rent-seeking" is use of politics or other means to create a market inefficiency that helps a special interest gain increased wealth, not through wealth creation. Zoning density restriction are from politics. There is universal understanding that zoning density restrictions (which is using politics to create scarcity) create higher housing costs. I don't know anyone who states that zoning density restrictions do not cause higher housing costs. So, please cite your source.
- surge 10y ago
  Journalists are glorified communications majors, the degree you go for when sports medicine/therapy doesn't interest you as much...they aren't exactly held to high intellectual standards, at least, not anymore. Think about the technical inaccuracies you see in articles concerning subject matter you're an expert in, or an event you were witness to. That's par for the course in most articles, few journalists bother to understand what it is they're writing about, or probably don't have time to. Then go into how journalism is ratings driven and going through huge cutbacks, and you have standards where it's more important an article be provocative and feed into their readership's confirmation bias than make people think or propose solutions or only work with hard facts. It's more provocative to blame white technocrats than government or landowners for not wanting an population density to go up because they like their views or impact the environment or it would devalue their property. Of course, my opinion is Silicon Valley should just not be there. Anywhere with a high barrier to entry of cost of living at that level will be discriminatory, also, what good is making that much money if most of it getting sunk into cost of basic living that doesn't improve your quality of life or meet the life style of someone making half as much somewhere else has and creates issues for those that lived there that don't work in tech. Tech needs to spread out, so there is space for others. You would think of all industries, physical proximity would be less of a factor.
- digler999 10y ago
  > Your feeling that wasn't a feeling. it is a fact that rent seeking is a market inefficiency. > there are many scholars that have written alternative views on the subject https://yourlogicalfallacyis.com/appeal-to-authority https://yourlogicalfallacyis.com/appeal-to-authority
lern_too_spel 10y ago
That isn't the journalist speaking. That's a quote from a local pastor. The journalist is simply reporting what is happening, not proposing solutions. Another person quoted in the article correctly identified the housing supply issue. "For all that, Hernandez-Goff thinks the systemic problems – housing shortages, wage stagnation, inequality – are beyond her." Since she doesn't have the political clout to solve that issue, she offers some short term first aid. "She wants to open a school parking lot to cars and RVs at night, so families with children can sleep without being disturbed; she thinks lack of sleep and stress are contributing to her district’s low test scores. And she would like to install washing machines in schools for those without homes."
- davidf18 10y ago
  > 'Another person quoted in the article correctly identified the housing supply issue. "For all that, Hernandez-Goff thinks the systemic problems – housing shortages, wage stagnation, inequality – are beyond her."' While the Hernandez-Goff agrees that they are systemic problems, she does not mention how to address housing shortages. Many think that one needs to spend money to create more (affordable) housing, but the real solution is simply to address the market inefficiency caused to benefit special interest groups. That she cites wage stagnation and inequality makes it sound like she doesn't understand the zoning density restriction because eliminating the rent-seeking zoning law restrictions eliminates the inequality and wage stagnation is not an issue because housing costs will drop meaning people can afford more on the same wages.
  - lern_too_spel 10y ago
    She isn't a trained economist but a community organizer providing hands-on assistance. Why are you expecting policy from her? This is an article about homeless people and the people working with them, not an opinion piece or a policy statement.
kafkaesq 10y ago
The problem with the high cost of housing isn't X. It's Y." Actually, it can be both X and Y. In this case, both zoning restrictions and the influx of FaceBooglers.
- davidf18 10y ago
  > "Actually, it can be both X and Y. In this case, both zoning restrictions and the influx of FaceBooglers." That statement might be true if there was not technology that enabled us to build tall buildings -- steel frames and elevators for example. Fix the zoning density restrictions and the markets will automatically fix the expensive housing regardless of the demand. Come to Manhattan and you'll see what I mean.
  - quesera 10y ago
    Wait, what? In what way has Manhattan fixed the problem of expensive housing?
    - davidf18 10y ago
      In the early 1920's NYC was building 100,000 apartments per year. Then government interfered and created the shortage: From Harvard Economist Edward Glaeser: "...Radically upping that supply would leave far more New Yorkers able to rent something for a reasonable price on the free market, instead of allowing rents to continue to rise for most while a select few win access, via waitlists and lotteries, to a separate class of apartments at below-market rates. Once upon a time, New York City understood this. In the early 1920s, we were building 100,000 new housing units, accessible to people across the economic spectrum, every year. As a result, the booming city remained affordable to working- and middle-class people like my grandparents. How was this possible? For one, the city’s regulations back then were relatively modest, focusing primarily on safety and light. Thanks in no small part to that limited red tape, the cost of producing new units was relatively low, and — surprise, surprise — they got built." (The article continues) http://www.nydailynews.com/opinion/build-big-bill-article-1.1913739 http://www.nydailynews.com/opinion/build-big-bill-article-1....

throwaway5752 10y ago

"It's a pity that they don't teach journalists how to think" It's a pity that you can't humbly disagree with someone over a differing opinion, rather than framing them as ignorant and unaware of some basic truth that you're privy to. It's not just off-putting, but it's also inaccurate. Your feeling on "rent-seeking" and zoning policy are hardly universal, and there are many scholars that have written alternative views on the subject.

davidf18 10y ago
> "Your feeling on "rent-seeking" and zoning policy are hardly universal, and there are many scholars that have written alternative views on the subject." Please cite your sources. The rent-seeking is one of 3 forms of microeconomic market inefficiencies (the others are [negative] externalities and information asymmetry). Prices rise because of scarcity. Zoning density restrictions causes scarcity. "rent-seeking" is use of politics or other means to create a market inefficiency that helps a special interest gain increased wealth, not through wealth creation. Zoning density restriction are from politics. There is universal understanding that zoning density restrictions (which is using politics to create scarcity) create higher housing costs. I don't know anyone who states that zoning density restrictions do not cause higher housing costs. So, please cite your source.
surge 10y ago
Journalists are glorified communications majors, the degree you go for when sports medicine/therapy doesn't interest you as much...they aren't exactly held to high intellectual standards, at least, not anymore. Think about the technical inaccuracies you see in articles concerning subject matter you're an expert in, or an event you were witness to. That's par for the course in most articles, few journalists bother to understand what it is they're writing about, or probably don't have time to. Then go into how journalism is ratings driven and going through huge cutbacks, and you have standards where it's more important an article be provocative and feed into their readership's confirmation bias than make people think or propose solutions or only work with hard facts. It's more provocative to blame white technocrats than government or landowners for not wanting an population density to go up because they like their views or impact the environment or it would devalue their property. Of course, my opinion is Silicon Valley should just not be there. Anywhere with a high barrier to entry of cost of living at that level will be discriminatory, also, what good is making that much money if most of it getting sunk into cost of basic living that doesn't improve your quality of life or meet the life style of someone making half as much somewhere else has and creates issues for those that lived there that don't work in tech. Tech needs to spread out, so there is space for others. You would think of all industries, physical proximity would be less of a factor.
digler999 10y ago
> Your feeling that wasn't a feeling. it is a fact that rent seeking is a market inefficiency. > there are many scholars that have written alternative views on the subject https://yourlogicalfallacyis.com/appeal-to-authority https://yourlogicalfallacyis.com/appeal-to-authority

lern_too_spel 10y ago

That isn't the journalist speaking. That's a quote from a local pastor. The journalist is simply reporting what is happening, not proposing solutions. Another person quoted in the article correctly identified the housing supply issue. "For all that, Hernandez-Goff thinks the systemic problems – housing shortages, wage stagnation, inequality – are beyond her." Since she doesn't have the political clout to solve that issue, she offers some short term first aid. "She wants to open a school parking lot to cars and RVs at night, so families with children can sleep without being disturbed; she thinks lack of sleep and stress are contributing to her district’s low test scores. And she would like to install washing machines in schools for those without homes."

davidf18 10y ago
> 'Another person quoted in the article correctly identified the housing supply issue. "For all that, Hernandez-Goff thinks the systemic problems – housing shortages, wage stagnation, inequality – are beyond her."' While the Hernandez-Goff agrees that they are systemic problems, she does not mention how to address housing shortages. Many think that one needs to spend money to create more (affordable) housing, but the real solution is simply to address the market inefficiency caused to benefit special interest groups. That she cites wage stagnation and inequality makes it sound like she doesn't understand the zoning density restriction because eliminating the rent-seeking zoning law restrictions eliminates the inequality and wage stagnation is not an issue because housing costs will drop meaning people can afford more on the same wages.
- lern_too_spel 10y ago
  She isn't a trained economist but a community organizer providing hands-on assistance. Why are you expecting policy from her? This is an article about homeless people and the people working with them, not an opinion piece or a policy statement.

kafkaesq 10y ago

The problem with the high cost of housing isn't X. It's Y." Actually, it can be both X and Y. In this case, both zoning restrictions and the influx of FaceBooglers.

davidf18 10y ago
> "Actually, it can be both X and Y. In this case, both zoning restrictions and the influx of FaceBooglers." That statement might be true if there was not technology that enabled us to build tall buildings -- steel frames and elevators for example. Fix the zoning density restrictions and the markets will automatically fix the expensive housing regardless of the demand. Come to Manhattan and you'll see what I mean.
- quesera 10y ago
  Wait, what? In what way has Manhattan fixed the problem of expensive housing?
  - davidf18 10y ago
    In the early 1920's NYC was building 100,000 apartments per year. Then government interfered and created the shortage: From Harvard Economist Edward Glaeser: "...Radically upping that supply would leave far more New Yorkers able to rent something for a reasonable price on the free market, instead of allowing rents to continue to rise for most while a select few win access, via waitlists and lotteries, to a separate class of apartments at below-market rates. Once upon a time, New York City understood this. In the early 1920s, we were building 100,000 new housing units, accessible to people across the economic spectrum, every year. As a result, the booming city remained affordable to working- and middle-class people like my grandparents. How was this possible? For one, the city’s regulations back then were relatively modest, focusing primarily on safety and light. Thanks in no small part to that limited red tape, the cost of producing new units was relatively low, and — surprise, surprise — they got built." (The article continues) http://www.nydailynews.com/opinion/build-big-bill-article-1.1913739 http://www.nydailynews.com/opinion/build-big-bill-article-1....