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> A price signal to the market to build more housing And, as basic economics will tell you, sending such a signal to a market is a windfall for people that alr
by pdonis 6y ago
> A price signal to the market to build more housing
And, as basic economics will tell you, sending such a signal to a market is a windfall for people that already own the underlying asset in that market--i.e., landlords. They get a windfall because they bought the asset when the market undervalued it (because the price signal was not being sent).
- whimsicalism 6y agoSure, but if paired with dezoning, the loss due to the elimination of rent-seeking through constricted suply would likely be larger decrease for landlords than the increase from demand surge from the subsidy.
- dragonwriter 6y ago> Sure, but if paired with dezoning, the loss due to the elimination of rent-seeking through constricted suply would likely be larger decrease for landlords than the increase from demand surge from the subsidy. Landlords benefit from dezoning; increased density increases the rent value realized per unit of land area, even if it might decrease it per unit of living area, even without subsidies (and the slumlords that go whole hog on density will make those islands of private communities that don’t even more valuable, so long as the crime and other unattractive effects of the former can be kept out of sight, out of mind, from the latter. The people opposed to dezoning aren’t landlords, they are residents who prefer low density conditions.