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> basically all the new construction in that area comes in at the top of the market. There's a reason for this. As a result of the fact that new construction
by nwallin 7y ago
> basically all the new construction in that area comes in at the top of the market.
There's a reason for this.
As a result of the fact that new construction is required to have 1-2 parking spots, developers need to put in a lot of parking. And because they need to put in a lot of parking, they need to be expensive. And because they need to be expensive, they might as well be luxury apartments. As a result of all this, all new construction is luxury apartments.
The biggest impact that lifting this requirement will have is that it will increase the amount of affordable housing.
- gtirloni 7y agoI don't know much about the US housing dynamics but it seems very unlikely that prices will get lower due to less parking being required. It's more likely the builders will profit more. We went through a similar situation with airplane tickets where I live. The govt agency in charge of aviation and the airlines all wanted the free luggage requirement gone citing cost reductions. They got it, the fares didn't get any cheaper and now you have to pay extra. I really don't see the 17% reduction in space required for parking being passed onto buyers. People will continue to demand 1-2 parking spots because that's a high cost area and people buying there don't care that much about that discount, if that even happens.
- jessaustin 7y agoThe two markets are not so similar. Air travel can only support a limited number of suppliers (in some locations this number is zero), since commercial airplanes are very expensive and require the use of valuable airport facilities. Housing isn't like that. Lots of investors can afford the note on a small apartment building. If one developer pads her profits, another one will undercut her.
- redis_mlc 7y ago> I don't know much about the US housing dynamics Then why are you commenting? The parent of your post was correct in saying "required", as in legally required for that zoning. After you subtract the required parking spots, setbacks, sidewalks, driveways then what you're left with is a few super-expensive townhouses in most of LA or the project gets cancelled.
- farah7 7y agoVery strange post. You start with the disclaimer you know nothing about the topic in hand, then go on explaining your treatise to the ptoblem.