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> Why do you assume that demand would remain constant despite a large increase in density? Sure - induced demand is a thing. But induced demand is a secondary
by nordsieck 7y ago
> Why do you assume that demand would remain constant despite a large increase in density?
Sure - induced demand is a thing. But induced demand is a secondary effect: people move to a place because the cost of living is now lower; it can slow the decrease in rent, but it can't stop it
More importantly, it's completely possible to just out-build induced demand. There are simply a limited number of people who want to live in SF (although admittedly, that number is quite a bit larger than the number who are currently living there).
So the more nuanced relation is: when supply dramatically outpaces demand, price will go down.
Just to make sure we're both on the same page, I'm advocating increasing the number of bedrooms in the city by a minimum of 1-2 orders of magnitude.