6 ms·

>both employers and residents want to minimize rents which drives sprawl and transportation webs, as opposed to hub and spoke models. I don't think this holds

by rtpg 8y ago

>both employers and residents want to minimize rents which drives sprawl and transportation webs, as opposed to hub and spoke models. I don't think this holds up empirically? The US is home to some of the highest rents in the world. Mid-sized US cities have way higher rents than major cities like Tokyo or Paris. Or maybe this is the idea, but if so it has failed miserably at letting people on the lower end of the spectrum be able to rent stably

jackcosgrove 8y ago
I don't know where you're getting your information, but US real estate rents and prices are low by developed economy standards. Here is a link: http://www.newgeography.com/content/006201-15th-annual-demographia-international-housing-affordability-survey-2019 http://www.newgeography.com/content/006201-15th-annual-demog... "The most affordable major housing markets are in the United States, with a moderately unaffordable Median Multiple of 3.9, followed by Canada (4.3) and Singapore (4.6). Ireland and the United Kingdom both have Median Multiples of 4.8. The major markets of Australia (6.9), New Zealand (9.0) and China (20.9) are severely unaffordable (Table ES-2)."
- jakecopp 8y ago
  Heads up, Sydney's median multiple was 13 at the end of 2017! I think it's come down a bit but not that much. We do have a pretty awesome train network though, I don't own a car and it's wonderful. Have a look at this graph for different world cities: https://www.abc.net.au/news/2018-01-22/australian-housing-unaffordability-experts-disagree-on-extent/9349796 https://www.abc.net.au/news/2018-01-22/australian-housing-un... [Edit: fixed link]
  - jpatokal 8y ago
    Your link goes back to this page?
    - jakecopp 8y ago
      Oops pasted the wrong link, too much coffee. Thanks.
- rtpg 8y ago
  This study is focused on price to buy, where a huge segment of the population are renters. This is the core issue with so many of these reports. Focusing on buying already rules out a huge segment of the population (incidentally the ones who have trouble surviving!), and ignores the fact that rent/buy ratios are very different between markets. US buying prices are relatively low because of how the entire economy is based around home ownership. But almost half the population rents.
  - jackcosgrove 8y ago
    There is a connection between prices and rents that can be warped temporarily and be permanently different in certain locales. However if you look at the table in the link below, the price-to-rent ratio clusters around the median for most places. In the US currently it's slightly more favorable to be a renter than a buyer compared to the historical price-to-rent ratio. If anything most of the deviations from the norm are towards making buying more expensive than renting. https://smartasset.com/mortgage/price-to-rent-ratio-in-us-cities https://smartasset.com/mortgage/price-to-rent-ratio-in-us-ci...

by rtpg 8y ago

jackcosgrove 8y ago

I don't know where you're getting your information, but US real estate rents and prices are low by developed economy standards. Here is a link: http://www.newgeography.com/content/006201-15th-annual-demographia-international-housing-affordability-survey-2019 http://www.newgeography.com/content/006201-15th-annual-demog... "The most affordable major housing markets are in the United States, with a moderately unaffordable Median Multiple of 3.9, followed by Canada (4.3) and Singapore (4.6). Ireland and the United Kingdom both have Median Multiples of 4.8. The major markets of Australia (6.9), New Zealand (9.0) and China (20.9) are severely unaffordable (Table ES-2)."

jakecopp 8y ago
Heads up, Sydney's median multiple was 13 at the end of 2017! I think it's come down a bit but not that much. We do have a pretty awesome train network though, I don't own a car and it's wonderful. Have a look at this graph for different world cities: https://www.abc.net.au/news/2018-01-22/australian-housing-unaffordability-experts-disagree-on-extent/9349796 https://www.abc.net.au/news/2018-01-22/australian-housing-un... [Edit: fixed link]
- jpatokal 8y ago
  Your link goes back to this page?
  - jakecopp 8y ago
    Oops pasted the wrong link, too much coffee. Thanks.
rtpg 8y ago
This study is focused on price to buy, where a huge segment of the population are renters. This is the core issue with so many of these reports. Focusing on buying already rules out a huge segment of the population (incidentally the ones who have trouble surviving!), and ignores the fact that rent/buy ratios are very different between markets. US buying prices are relatively low because of how the entire economy is based around home ownership. But almost half the population rents.
- jackcosgrove 8y ago
  There is a connection between prices and rents that can be warped temporarily and be permanently different in certain locales. However if you look at the table in the link below, the price-to-rent ratio clusters around the median for most places. In the US currently it's slightly more favorable to be a renter than a buyer compared to the historical price-to-rent ratio. If anything most of the deviations from the norm are towards making buying more expensive than renting. https://smartasset.com/mortgage/price-to-rent-ratio-in-us-cities https://smartasset.com/mortgage/price-to-rent-ratio-in-us-ci...