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While increased demand for real estate had definitely played a substantial role, housing costs could be flat or even decrease if we simply increased supply dram

While increased demand for real estate had definitely played a substantial role, housing costs could be flat or even decrease if we simply increased supply dramatically. There are a limited number of people but there is a cubic amount of space if we build up. If we had policies that encouraged always building then housing prices would collapse and we wouldn't have an affordable housing problem at all, even with foreign investors buying speculative property.

toomuchtodo 8y ago
Or we could curtail speculative investment from a foreign nation's citizens (as other countries do, Thailand and Mexico come to mind) and not have to find ways to radically increase housing supply that we're not able to accomplish regardless. The charade that housing supply momentum can adjust faster than capital movement needs to end. In places that can build more housing, it is done. In places it can't be done, or the local citizens don't want it done, it is not. "Build, baby, build!" is just as ridiculous as "Drill, baby, drill!" [1] We work backwards from those two fundamental truths. [1] https://en.wikipedia.org/wiki/Drill,_baby,_drill https://en.wikipedia.org/wiki/Drill,_baby,_drill
basementcat 8y ago
For various reasons there seems to be a tendency for those who invest in real estate to exercise their political power in such a way as to maximize the value of their investment. Some of those who look for a reason why affordable housing is scarce in their community may consider looking in the mirror.
- Fjolsvith 8y ago
  Exactly. The wealthy landlords in our small rural community vetoed a Walmart, vetoed a community college and continually try to prevent new home construction.
ben_w 8y ago
It’s complicated. Sure, there is way more space than people if we want it, but a surprisingly large number want to live in the same few places. If many want to live in Manhattan, and they do, you’ve only got Manhattan to fill up and then the prices rise, which they did.
shard972 8y ago
> housing costs could be flat or even decrease if we simply increased supply dramatically I have a feeling places like SF and NY have already tried this. Considering most of these foreign investors are most interested in these two cities over lets say Nebraska, it's hard to see how NY just needs to "build more supply" is a solution. > If we had policies that encouraged always building We have those in Australia, it's called negative gearing. We also have the most expensive houses when compared to average income and our cities have taken your advice and started to build up at rapid paces. Still hasn't worked. The Aus government is now suggesting we lower our immigration cap from 1% of total pop yearly so maybe that will help.
- GlennS 8y ago
  Not sure negative gearing is actually intended to increase house building? Isn't it just a strange (legal) tax loophole which enough people take advantage of that it's difficult to get rid of politically?
  - goodcanadian 8y ago
    Well, it likely increases housing prices by reducing the effective cost of leverage.
ShorsHammer 8y ago
You don't even need to build up. There's plenty of land at current densities, it's zoning and people with guns/legal authority that prevent others from building where they want to.

toomuchtodo 8y ago

Or we could curtail speculative investment from a foreign nation's citizens (as other countries do, Thailand and Mexico come to mind) and not have to find ways to radically increase housing supply that we're not able to accomplish regardless. The charade that housing supply momentum can adjust faster than capital movement needs to end. In places that can build more housing, it is done. In places it can't be done, or the local citizens don't want it done, it is not. "Build, baby, build!" is just as ridiculous as "Drill, baby, drill!" [1] We work backwards from those two fundamental truths. [1] https://en.wikipedia.org/wiki/Drill,_baby,_drill https://en.wikipedia.org/wiki/Drill,_baby,_drill

basementcat 8y ago

For various reasons there seems to be a tendency for those who invest in real estate to exercise their political power in such a way as to maximize the value of their investment. Some of those who look for a reason why affordable housing is scarce in their community may consider looking in the mirror.

Fjolsvith 8y ago
Exactly. The wealthy landlords in our small rural community vetoed a Walmart, vetoed a community college and continually try to prevent new home construction.

ben_w 8y ago

It’s complicated. Sure, there is way more space than people if we want it, but a surprisingly large number want to live in the same few places. If many want to live in Manhattan, and they do, you’ve only got Manhattan to fill up and then the prices rise, which they did.

shard972 8y ago

> housing costs could be flat or even decrease if we simply increased supply dramatically I have a feeling places like SF and NY have already tried this. Considering most of these foreign investors are most interested in these two cities over lets say Nebraska, it's hard to see how NY just needs to "build more supply" is a solution. > If we had policies that encouraged always building We have those in Australia, it's called negative gearing. We also have the most expensive houses when compared to average income and our cities have taken your advice and started to build up at rapid paces. Still hasn't worked. The Aus government is now suggesting we lower our immigration cap from 1% of total pop yearly so maybe that will help.

GlennS 8y ago
Not sure negative gearing is actually intended to increase house building? Isn't it just a strange (legal) tax loophole which enough people take advantage of that it's difficult to get rid of politically?
- goodcanadian 8y ago
  Well, it likely increases housing prices by reducing the effective cost of leverage.

ShorsHammer 8y ago

You don't even need to build up. There's plenty of land at current densities, it's zoning and people with guns/legal authority that prevent others from building where they want to.