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If only wealthy employees can buy the 2000 new housing units close to the big corporate campus, then that means those 2000 workers are moving out of housing tha
by Johnny555 8y ago
If only wealthy employees can buy the 2000 new housing units close to the big corporate campus, then that means those 2000 workers are moving out of housing that's farther away, lowering prices (or at least slowing price rise) in those farther suburbs.
So yeah, maybe the company janitor can't afford the $1.2M luxury apartment next to campus, but maybe he can afford a $600K house 15 miles away instead of living in his $400K house 30 miles away.
- jack9 8y agoThere's some misunderstanding about housing markets illustrated by this comment which seems intuitive to me. Given the luxury pricing, not all the units will be rented (or not for long) because they don't need to be to keep the property profitable. Of those individuals that could afford the price, a large amount will move into the more affordable housing out of personal self-interest. The trickle down doesn't work in the manner described, in any meaningful way. Historically (rather than regionally) it has been working out this way for at least my lifetime.
- _ph_ 8y agoOne could of course tax empty housing. In Hamburg, Germany, you can leave an appartment empty for up to 3 months after that, you are taxed on the base of its rental value, whether you get that paid or not.