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The problem with all real estate development is all the profits flow to the developers and all the costs flow to the existing residents (more traffic, infrastru
by danieltillett 9y ago
The problem with all real estate development is all the profits flow to the developers and all the costs flow to the existing residents (more traffic, infrastructure, etc). I am surprised that anyone is in favour of development in their neighbourhood unless they are a developer.
The solution is to share the benefits of new development with the existing residents so they gain from development. Get this right and communities will be fighting each other to have developers come in and build new houses.
- wwgg715 9y agomore units equals more property taxes for the municipality to pay for services, and more people buying stuff and paying sales tax, and use fees like the $11 BART ticket.
- danieltillett 9y agoProperty tax are not supposed to be a profit center, but cover the costs of providing services. Adding more people just increases the costs so it works out a zero for the existing residents.
- closeparen 9y agoSilicon Valley cities can collect those profits just fine by building offices instead.