4 ms·
What's crazy is, even with the insanely high rents, they would still need to go much higher in order to make high-rise construction profitable. I think we real
by megaman8 8y ago
What's crazy is, even with the insanely high rents, they would still need to go much higher in order to make high-rise construction profitable. I think we really need to start looking at what exactly is driving all those costs in these blue states. Other cities in the US are able to build high rise for much less rent: Chicago, Columbus, Houston, etc.
It would be interesting to see, in a chart, all the costs that go into housing construction and compare them all city to city. I suspect the answer has a lot to do with Regulation and the local labor cost (now a self perpetuating problem).
- NorthOf33rd 8y agoChicago is in a blue state with a rather notorious history of regulation and local labor. Also, the cities you list have different seismic realities to contend with.
- Fins 8y agoDoesn't seem to prevent Japan from building skyscrapers. And excellent transit.
- NorthOf33rd 8y agoAnd real estate is very very expensive there too.
- Cyph0n 8y agoActually, it’s not. Here is a great video (from a great channel) that explains why: https://youtu.be/iGbC5j4pG9w https://youtu.be/iGbC5j4pG9w
- megaman8 8y agoChicago may be blue, but it has relatively few regulation for housing compared with cities here. And the cost of labor is lower there than cities in CA.
- kenhwang 8y agoEarthquakes probably play a bigger factor.
- crushcrashcrush 8y agoTokyo would beg to differ
- kenhwang 8y agoYou mean a city with higher cost per sqft compared to the bay despite having significantly higher density and no housing shortage?
- dionidium 8y agoThat’s not the story anybody else is telling https://www.vox.com/2016/8/8/12390048/san-francisco-housing-costs-tokyo https://www.vox.com/2016/8/8/12390048/san-francisco-housing-... https://www.thenational.ae/business/property/want-affordable-housing-then-take-inspiration-from-tokyo-and-build-more-of-it-1.713304 https://www.thenational.ae/business/property/want-affordable... https://www.forbes.com/sites/scottbeyer/2016/08/12/tokyos-affordable-housing-strategy-build-build-build/#13e1cf4348d5 https://www.forbes.com/sites/scottbeyer/2016/08/12/tokyos-af...
- Fins 8y agoTokyo is also far more livable place with excellent transit, low crime, clean, with much better food. And hell, I've stayed in hotels in Tokyo (perfectly fine ones, although obviously not 5-star ones) that would cost me less for a month than a crappy rental apartment in SJ.
- kenhwang 8y agoOh I definitely agree. Tokyo has done an excellent job keeping housing supply ahead of demand. That means the price of the housing in Tokyo is primarily the cost of T&M for the property, where as the cost of housing in California is almost entirely demand far exceeding supply.