3 ms·
> Only if you assume the current population of the city is held steady and you are not beaten out by new arrivals. The population does not have to be held stea
by jaredklewis 7y ago
> Only if you assume the current population of the city is held steady and you are not beaten out by new arrivals.
The population does not have to be held steady for the new high-end housing to lower prices for mid and low-end housing.
The only assumption the parent makes is that the aggregate desire of people not currently living in SF to move to SF is not affected by the increase in supply. This is an assumption, but I don't think an outlandish one.
Yes, of course some of the newly opened mid-level apartments (when their previous inhabitant moves to a high-end apartment) will be filled by new comers. But aren't those new comers going to compete for the existing space whether or not a more high-end space gets built?
- anigbrowl 7y agoTheir decision to move here is probably a function of the (perceived) available housing stock.
- jaredklewis 7y agoHow does that make sense? What about all of the people that have moved to SF in the last few years? Did they come because hey thought there was availability? If availability was a major factor in where people wanted to live, Detroit wouldn’t be half empty. Now if the increase in high end housing makes housing across the board cheaper, then yes, it makes a lot of sense that more people would want to come. Because the plan worked and housing got cheaper.
- marchenko 7y agoPerhaps housing availability is sufficient but not necessary in drawing people to a desirable region, in a manner akin to the idea of induced demand in traffic engineering.