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Increasing supply to meet demand should reduce prices. That is the argument and the desire. Have any cities ever proven that it's true? My experience has uni
by nitrogen 5y ago
Increasing supply to meet demand should reduce prices.
That is the argument and the desire. Have any cities ever proven that it's true? My experience has universally been that prices go up indefinitely, until the local economy dies and there is no money left to pay the rent.
- fossuser 5y agoTokyo and Singapore come to mind - it requires proper incentives to be in place. The US is a mess given the incentives towards home ownership as an investment. The Bay Area and California make this incentive worse with Prop 13.
- seryoiupfurds 5y agoI don't have a link to hand but I remember reading that rents in Seattle dropped after they started approving more rental buildings. If 10,000 yuppies move to town and 1000 apartments' worth of old buildings are torn down to build new apartments for them, then 1000 people are displaced. But consider the alternative: if 10,000 yuppies move in and no new housing is built, they'll bid up the price of run down old buildings until nobody else can afford them, and 10,000 people are displaced.