6 ms·
> Rising rents due to speculation or just plain landlord greed Well, you'd need both, not just one: landlord greed has a cap, average rents can't be much more
by zamfi 6y ago
> Rising rents due to speculation or just plain landlord greed
Well, you'd need both, not just one: landlord greed has a cap, average rents can't be much more than the cost of buying, though there will always be some folks who don't qualify for a mortgage for whatever reason. The only reason landlords can be greedy is the leverage they have because supply is constrained -- otherwise, their greed would be thwarted by developers' greed!
Speculation and landlord greed only really affect prices in a supply-constrained environment. In markets where housing is a commodity, and can actually be produced, the cost of housing tends towards the cost of land acquisition & construction. Not always smoothly, of course...if demand jumps very suddenly, the construction market needs time to adjust, etc.
- heterodoxxed 6y agoThat assumes the market is rational and the actors within are rational.
- zamfi 6y agoI guess? But > I advocate a combination of strong rent control, aggressively subsidized housing and consistent growth (especially vertically) where possible. That assumes rational actors in local government, which strikes me as even more fanciful.
- heterodoxxed 6y agoI'm of the mind that markets may be rational *given* (and here's the key) a long enough time period. However, human needs have an expiration date and often cannot wait for the market to make sense. | That assumes rational actors in local government No it doesn't, if you can build enough power you can force local governments to enact these kinds of reforms. All politicians can be pressured if you know where to push.
- zamfi 6y agoYes, on the one hand you could bet on the power of a bunch of individuals the system serves well-enough (after all, they're still here!) to apply political pressure to some set of local governments (though, note that rent control is starting to be regulated at the state level) to change policy to help the less-well-off in their neighborhoods. On the other hand, you could bet on "rational activity" from landlords and developers—aka greedy self-interest. So, sure, you might get a conscientious grassroots group to apply political pressure for rent control when it's not in their own self-interest. But you can 100% count on developers and landlords to be greedy, and I'd much rather channel that group into the outcome I want while I wait and hope for the former.
- heterodoxxed 6y ago| a bunch of individuals the system serves well-enough Again, are you talking about SFBA? Because I thought we addressed that.
- zamfi 6y agoNope. Look who overwhelmingly applies pressure to local governments everywhere -- it's not the marginalized and poor! This is not an SFBA phenomenon, it's almost a natural law.
- heterodoxxed 6y ago| after all, they're still here! This is a very SFBA thing to say. | Look who overwhelmingly applies pressure Yeah, I'm not talking about those people. Poor and working people have mobilized plenty of times before. That's been constant throughout modern history and only in the past few decades have we had an ahistorical low period of organizing activity. I expect that lull to end in the coming years. In many ways it already has.
- zamfi 6y ago> This is a very SFBA thing to say. I'm not sure how it's a very SFBA thing to point out that the people who have a voice in local politics are the people who haven't been displaced? > Poor and working people have mobilized plenty of times before This would require them working in their own rational self-interest too, though -- which (a) there isn't much evidence for, and (b) kinda negates your earlier argument about assuming rational actors.