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Wait so you’re telling me that increasing real estate supply can help control rent inflation!? SF take note
by lquist 7y ago
Wait so you’re telling me that increasing real estate supply can help control rent inflation!? SF take note
- hackeraccount 7y agoFunny that a communist country is demonstrating supply and demand curves.
- Bayart 7y agoI don't think anybody would call China "communist" beyond a symbolic level.
- jjoonathan 7y agoSure, but when the people who call themselves communists have a more competitive real estate market, it's still pretty damning.
- geofft 7y agoCool, so we can implement China's policies towards housing, industry, and private property in the US without anyone complaining about us being communists?
- funkaster 7y agoagreed. China feels more like a big oligarchy.
- yardie 7y agoIn China the people definitely do not control the means of production. The party controls that.
- dis-sys 7y agoI live in downtown Shanghai, my apartment is next to a block of land waiting for development. The land was auctioned more than 10 years ago to a private foreign developer, they just left the land there doing nothing waiting for the land value to go up. Such land hoarding is again the law and they finally managed to get media attention this week. Anyone following local news here in Shanghai should be able to tell the location I am talking about. You are partially right here, people do not control the means of production, way too many greedy foreign companies do. That Mr. Huang mentioned in the article is another good example, why should he be paid only $1,000 USD when the same Ford car he built is being sold way more expensive in China than in the US?
- baybal2 7y agoWhen I did a short term contract in SH in 2016, I lived near an "ultraluxury" highrise that was five years old. At 21:00, I was only able to count like 15 flats having lights on.
- atr_gz 7y agoWhy are you putting so much blame on foreign companies? Any statistics on WFOE in China to back that up?
- marcinzm 7y ago>why should he be paid only $1,000 USD when the same Ford car he built is being sold way more expensive in China than in the US? Because otherwise he'd be paid $0 since it'd be cheaper to manufacture the car somewhere other than China. Also, Chinese politicians are perfectly free to require such things so it's odd that you're blaming western companies which only have power in China because politicians let them have power. Of course, massive unemployment rates tend to cause more issues so it's clear why they don't.
- onetimemanytime 7y agoCommunist? NOPE. See all the billionaires and social classes in China. Dictatorship dressed up as communism, yes. The current ruling class in China is very aware that people need to be happy with basic necessities or else.... That's all.
- TomMarius 7y agoDon't tell them it's a law of economics, they might want to try to vote to change it
- qaq 7y agoWhy would real estate owners acting in their own self interest want that ? The funny thing I notice is that the left rhetoric evaporates as soon is it has a chance to affect valuation of persons own assets.
- deleted 7y ago[deleted]
- njepa 7y agoIt isn't just supply though, but essentially inequality. Chinese cities have completely different demographics than western cities. If you want to live somewhere popular in China rents, and real estate values, are rapidly increasing. Housing isn't like manufactured goods where the marginal cost decrease the more you make. Since the more you build in one area the less available space there is. If you want to decrease cost you have to supply more space. Still that is only the supply side. As long as there are people, or even an increase of people, that are willing to pay it never becomes affordable even if there are comparable.
- hellcow 7y ago> Housing isn't like manufactured goods where the marginal cost decrease the more you make. Since the more you build in one area the less available space there is. If you want to decrease cost you have to supply more space. This was probably true in 1750, but today you can build up. A 2000 SQ foot home can become a 40,000 SQ foot tower.
- ClayShentrup 7y agoExactly. We can increase density. There isn't unlimited land, but there aren't unlimited resources for any product.
- fulafel 7y agoMarginal building cost per unit of space increases in this case.
- dmoy 7y agoRight but sometimes the super expensive part is just the land it's built on. My unit has a construction cost that's significantly less than half of my unit's total value. The tiny one story ramblers across the street all sold for over a million a pop, but the houses were worth ~negative to the purchaser and got torn down and replaced.
- bufferoverflow 7y ago
- ww520 7y agoFalse comparison to SF. Build dense highrises in the middle of nowhere of course make the rent cheap. The dense highrises in the middle of Shanghai would have outrageous rent. Desirable places are always expensive.