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> This approach doesn't seem like a solution to affordable housing, even though many of these companies use that concept in their marketing. It's not a complet
by Eridrus 8y ago
> This approach doesn't seem like a solution to affordable housing, even though many of these companies use that concept in their marketing.
It's not a complete solution, but construction costs provide a floor on the price of new housing.
Even if we solve all the other issues around zoning, impact fees (https://letsgola.wordpress.com/2018/06/03/impact-fees-are-bad-taxes-are-good/ https://letsgola.wordpress.com/2018/06/03/impact-fees-are-ba...), approval times, NIMBYs, etc, the price of dense, new housing is going to provide a floor on how much it costs to house people.
It's also super important for construction to be cheap for it to make sense to build denser housing where moderately dense housing exists, because in those cases the value of the building over the cost of land is significant, e.g. I live in a 4 story building, but I live right on top of a subway station where we should probably have far more density, but my landlord is deriving value from all the occupants, but not the land.
So, it's not going to solve the housing issue by itself, but like the Ben Horowitz saying, there are no silver bullets, only lead bullets. And making construction costs cheaper is one of them.