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How does increased density drive increase prices? Say we have a city. Currently there are 10,000 old apartments. I decide to go in and build an additional 10,
by JamesBarney 6y ago
How does increased density drive increase prices?
Say we have a city. Currently there are 10,000 old apartments. I decide to go in and build an additional 10,000 new apartments. Why would the price to rent one of the old apartments go up?
I don't understand what the proposed mechanism is at all.
- imtringued 6y agoIn theory construction costs of taller buildings are higher, in practice housing prices far exceed cost of construction everywhere. Some rich people buy luxury apartments as second or third apartments but don't live in them. None of these are enough to make the entire cities more expensive to live in but they are highly visible so those who need to justify their selfish actions (preventing housing) seek deniable plausibility in them.