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With a couple of exceptions, how is housing inelastic sans government zoning and other policy restrictions? We're long past the point where the private sector
by zhdc1 6y ago
With a couple of exceptions, how is housing inelastic sans government zoning and other policy restrictions?
We're long past the point where the private sector can estimate housing demand on a long enough time scale for single and multi-family housing in most environments.
Outside of cases like Manhattan or London, where demand is driven more by wanting to 'live in...' than actual economic necessity, I don't see why housing needs to be overly regulated when it only takes one-two years (or less) to build new capacity once you remove all of the unnecessary red tape.
- michaelscott 6y agoSince we're on HN I guess it's safe to assume that you live in the general Bay area, and probably have for most or all of your life, which is only relevant in that if true it's a location which is particularly prone to problematic housing policy and not much else in the way of housing supply (from what I can tell?). However the view that policy is the only issue to housing just isn't appropriate in many places outside of SF and Singapore is actually a very good example (as is London to a certain degree, expanding inland burroughs notwithstanding): you only have so much space on which to build housing, but the population is variable. If we take the available housing space to be the supply and the population requiring housing to be the demand, you have a textbook case of economic inelasticity. In Singapore they have ironically solved this with policy, as opposed to exacerbating it, and since this was planned early in the country's developmental phase as an economic policy I can assume they understood this problem as economic one very early on.