3 ms·

>> it would be unfair for MV to carry the weight > The fact that it's perceived as a sacrifice to build housing is one of the core problems. In the short term

>> it would be unfair for MV to carry the weight > The fact that it's perceived as a sacrifice to build housing is one of the core problems. In the short term, increased housing will decrease property values. This has to be the case because rentals are a direct competitor to real estate ownership. In the long term, increased housing should increase property values; however, few people are willing to place much value on something even 2 years in the future, much less 20. > Due to Prop 13, CITIES LOSE MONEY BY HAVING RESIDENTS. I'm not sure how much I buy this. I'm not super familiar with California, so I'm not going to say it's false, but there should be a number of other methods (sales tax comes to mind) for cities to raise revenue from residents.

pas 7y ago
> increased housing will decrease property values. How? It means you get either a new nice property on a lot, or a lot more properties on a lot. (If density increases.) Increased density increases demand which draws in services and attention, which increases property values. Of course there's an inflection point, but the US/Cali/Valley/SF is a looooong waaaay awaaaaay from worrying about slums. > short term Yes, people don't like constructions, but that's it probably. After it's done, no one cares.
- nordsieck 7y ago
  >> In the short term, increased housing will decrease property values. > How? If you keep demand constant and increase supply, you will decrease price. This is one of the most basic tenants of microeconomics. If that's too abstract, just imagine you're a landlord in SF who's used to increasing your rent by 10% per year (no idea what the actual number is) because there are 1% vacancies in the city. Now imagine that all of a sudden more housing came on line so that there are now 20% vacancies in the city. You probably wouldn't be able to increase your price and may have to drop it. Now imagine that the number of bedrooms in SF increased by a factor of 10 overnight. The price of real estate would crater. In the long term, the price of real estate will go up with density. All you have to do is look at places like Manhattan, Tokyo, Hong Kong, etc. This is because cities tend to draw in new citizens from the surrounding area until it is too expensive or too uncomfortable to live there. However, it takes time for those people to move to the city and fill vacancies.

pas 7y ago

> increased housing will decrease property values. How? It means you get either a new nice property on a lot, or a lot more properties on a lot. (If density increases.) Increased density increases demand which draws in services and attention, which increases property values. Of course there's an inflection point, but the US/Cali/Valley/SF is a looooong waaaay awaaaaay from worrying about slums. > short term Yes, people don't like constructions, but that's it probably. After it's done, no one cares.

nordsieck 7y ago
>> In the short term, increased housing will decrease property values. > How? If you keep demand constant and increase supply, you will decrease price. This is one of the most basic tenants of microeconomics. If that's too abstract, just imagine you're a landlord in SF who's used to increasing your rent by 10% per year (no idea what the actual number is) because there are 1% vacancies in the city. Now imagine that all of a sudden more housing came on line so that there are now 20% vacancies in the city. You probably wouldn't be able to increase your price and may have to drop it. Now imagine that the number of bedrooms in SF increased by a factor of 10 overnight. The price of real estate would crater. In the long term, the price of real estate will go up with density. All you have to do is look at places like Manhattan, Tokyo, Hong Kong, etc. This is because cities tend to draw in new citizens from the surrounding area until it is too expensive or too uncomfortable to live there. However, it takes time for those people to move to the city and fill vacancies.