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Why would it destroy value? If the area around my home develops into a booming area, some developer will want to buy my home and build something bigger on it. T
by ajmurmann 8y ago
Why would it destroy value? If the area around my home develops into a booming area, some developer will want to buy my home and build something bigger on it. These low-rise buildings must be bought and replaced for the "build, build, build" to happen. The only way this could backfire for some is if the building boom starts and then the economy collapses and the boom never returns. Now you have an old house surrounded by high rises and rent is low because of the surplus that was built. That seems very unlikely though. To me the bigger threat seems to be that some other place with fewer NIMBYs will outgrow SV because of the artificial limit imposed by the NIMBYs.
- avar 8y agoSure, some property owners will luck out in the way you're describing. Their lot will be bought out to develop a high-rise. But it's just as likely that the lot next to them will be bought for development, and theirs will be passed over for the foreseeable future, or that the only reason anyone lives in their suburb is because of unreasonable prices where people actually want to live. Now their property value will plateau or fall as demand for housing falls due to new development happening elsewhere. In the long term it's likely that everyone involved will win, but many property owners just have a 10-20 year horizon before they'd like to sell, and might correctly foresee that a deregulated zoning policy might lead to a growth slump in that time frame if the supply doesn't continue to be artificially restricted.