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Note his hypothesis that condos are the core of the problem -- they aren't rented, they're purchased with credit by young professionals who "spend the creditwor

by wrs 7y ago

Note his hypothesis that condos are the core of the problem -- they aren't rented, they're purchased with credit by young professionals who "spend the creditworthiness" they gained by moving to a creative-class city, and live in them until they sell them to other incoming young professionals. There could be plenty of rental demand that isn't affected by building lots of dense primary-residence condos that just attract more of the same. He does wonder at the end what would happen if you built so much housing that you broke that cycle, but that would be hard. Basically he's saying there are two tiers of housing consumers, and building dense condos does nothing at all for the lower tier who can never bridge the creditworthiness gap to get into them.

com2kid 7y ago
Most new housing I see around me (Seattle Area) is apartments for rent. Various legal reasons in WA state for it, but I'm of the opinion that having everyone rent is worse long term for society than having people become part of the local community. Of course time will tell.
- iamtheworstdev 7y ago
  On the other hand if everyone is bound to a mortgage then they are handcuffed to an area.
  - sampo 7y ago
    > if everyone is bound to a mortgage then they are handcuffed to an area A condo in a growing city is very liquid property and easy to sell.
    - gshdg 7y ago
      Unless it’s 2008 and nobody can get credit. Or you bought into the peak of the market and now you’re underwater.
sokoloff 7y ago
For everyone who was renting and decides to buy a dense condo surely opens up a rental unit for someone who can't afford or chooses not to buy.
- wrs 7y ago
  But they weren't renting…they came from out of town to get to their high-paying creative job.
  - gshdg 7y ago
    But they’re going to be doing that (coming from out of town to take a high paying job) anyway. Without condos being built they’ll just be putting that pressure on the rental market. Also, a lot of the condos being built - at least here in NY - are rental units.
- masonic 7y ago
  Unless they are coming from out of the area.

by wrs 7y ago

com2kid 7y ago

Most new housing I see around me (Seattle Area) is apartments for rent. Various legal reasons in WA state for it, but I'm of the opinion that having everyone rent is worse long term for society than having people become part of the local community. Of course time will tell.

iamtheworstdev 7y ago
On the other hand if everyone is bound to a mortgage then they are handcuffed to an area.
- sampo 7y ago
  > if everyone is bound to a mortgage then they are handcuffed to an area A condo in a growing city is very liquid property and easy to sell.
  - gshdg 7y ago
    Unless it’s 2008 and nobody can get credit. Or you bought into the peak of the market and now you’re underwater.

sokoloff 7y ago

For everyone who was renting and decides to buy a dense condo surely opens up a rental unit for someone who can't afford or chooses not to buy.

wrs 7y ago
But they weren't renting…they came from out of town to get to their high-paying creative job.
- gshdg 7y ago
  But they’re going to be doing that (coming from out of town to take a high paying job) anyway. Without condos being built they’ll just be putting that pressure on the rental market. Also, a lot of the condos being built - at least here in NY - are rental units.
masonic 7y ago
Unless they are coming from out of the area.