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Building high-density housing is certainly in the interest of people who rent, since more rental supply equals lower prices for rent. But you're right that it

Building high-density housing is certainly in the interest of people who rent, since more rental supply equals lower prices for rent. But you're right that it isn't in the interest of people who own a property. Congratulations, you've identified the cause of NIMBYism!

Spooky23 9y ago
It does not. Only one thing leads to lower rent in these cities -- real estate busts. There are probably two dozen residential or mixed use skyscrapers alone being erected in Manhattan. The annual rents of 80%+ of these units probably exceed the median household income in Manhattan, unless they are directly subsidized. The rents will come down when rates go up and overleveraged developers go bankrupt.
- cycrutchfield 9y ago
  I don’t think you completely understand supply and demand. If Mercedes makes more cars, that does not raise the price of a Toyota.
  - Spooky23 9y ago
    Unlike cars, there is a finite supply of real property, most of which is enjoyed by its owners for whatever purpose they choose. To borrow your car analogy, there will never be a "Toyota" housing unit built in Atherton, CA or a few blocks from Rockeffler Center in NYC. The current issues have more to do with a glut of cash than a shortage of housing.
    - cycrutchfield 9y ago
      >Unlike cars, there is a finite supply of real property, most of which is enjoyed by its owners for whatever purpose they choose. In what world do you live in where the number of housing units in a city is bounded by some value? A cursory examination of any city's housing stock data would tell you otherwise. >To borrow your car analogy, there will never be a "Toyota" housing unit built in Atherton, CA or a few blocks from Rockeffler Center in NYC. This is like saying that when you go to the Mercedes dealership all you see is expensive cars, therefore there only exists expensive cars. Each incremental Mercedes that is produced does not raise the price of a Toyota. In fact, the derivative of that price curve is most likely negative. Why is housing any different? >The current issues have more to do with a glut of cash than a shortage of housing. I agree that low interest rates have exacerbated the situation, but the fact of the matter is that there is a net influx of people to large cities like San Francisco, and there is indeed a shortage of housing. Why you choose to ignore the data, I do not know.
    - closeparen 9y ago
      We are nowhere near economic or engineering height limits. There will never be a Toyota housing unit in Atherton because they are illegal there. Land sure is finite, which is why it’s so important to prefer the 500 homes of a luxury skyscraper over the 5 luxury houses that would otherwise occupy the same size site.

Spooky23 9y ago

It does not. Only one thing leads to lower rent in these cities -- real estate busts. There are probably two dozen residential or mixed use skyscrapers alone being erected in Manhattan. The annual rents of 80%+ of these units probably exceed the median household income in Manhattan, unless they are directly subsidized. The rents will come down when rates go up and overleveraged developers go bankrupt.

cycrutchfield 9y ago
I don’t think you completely understand supply and demand. If Mercedes makes more cars, that does not raise the price of a Toyota.
- Spooky23 9y ago
  Unlike cars, there is a finite supply of real property, most of which is enjoyed by its owners for whatever purpose they choose. To borrow your car analogy, there will never be a "Toyota" housing unit built in Atherton, CA or a few blocks from Rockeffler Center in NYC. The current issues have more to do with a glut of cash than a shortage of housing.
  - cycrutchfield 9y ago
    >Unlike cars, there is a finite supply of real property, most of which is enjoyed by its owners for whatever purpose they choose. In what world do you live in where the number of housing units in a city is bounded by some value? A cursory examination of any city's housing stock data would tell you otherwise. >To borrow your car analogy, there will never be a "Toyota" housing unit built in Atherton, CA or a few blocks from Rockeffler Center in NYC. This is like saying that when you go to the Mercedes dealership all you see is expensive cars, therefore there only exists expensive cars. Each incremental Mercedes that is produced does not raise the price of a Toyota. In fact, the derivative of that price curve is most likely negative. Why is housing any different? >The current issues have more to do with a glut of cash than a shortage of housing. I agree that low interest rates have exacerbated the situation, but the fact of the matter is that there is a net influx of people to large cities like San Francisco, and there is indeed a shortage of housing. Why you choose to ignore the data, I do not know.
  - closeparen 9y ago
    We are nowhere near economic or engineering height limits. There will never be a Toyota housing unit in Atherton because they are illegal there. Land sure is finite, which is why it’s so important to prefer the 500 homes of a luxury skyscraper over the 5 luxury houses that would otherwise occupy the same size site.