4 ms·

Is there definable criteria for measuring the success of this policy direction? What are the metrics? Is there an example of this policy direction working else

Is there definable criteria for measuring the success of this policy direction? What are the metrics? Is there an example of this policy direction working elsewhere? Is the goal solely improving housing affordability in locations with high-demand? Is exacerbating the wealth gap of concern? Density is almost always developed as rental units; growing the permanent rental class means eliminating access to the only vehicle for building wealth for middle and low income Americans.

aluminum96 5y ago
> growing the permanent rental class means eliminating access to the only vehicle for building wealth This is a policy choice, and I would argue it's a bad choice. If we strive to make housing cheaper across the board, households will have more money available to save and invest by other means. In particular, the incentives created by housing as an appreciating investment are awful. Owners who have all their money locked up in home equity are incentivized to oppose new development, creating an artificial housing shortage. As a counterexample, consider Germany: virtually all households rent, housing stock is plentiful and affordable, and the middle class is still able to save and build wealth.
- mensetmanusman 5y ago
  I wish our wealth building was in the form of production machines that families maintain through investment.
  - zepto 5y ago
    What do you mean by “ production machines”?
    - dodobirdlord 5y ago
      Presumably investing by buying stock in companies that are economically productive, as opposed to engaging in purely speculative investment like owning land.
    - nitrogen 5y ago
      Probably cottage industry. A machine shop or clothing line in every garage.
- teakettle42 5y ago
  Isn't Germany experiencing a housing shortage — and soaring rents — in their major cities? That aside, I'm not convinced that encouraging home ownership is bad policy. Home ownership is a direct personal investment in your community, a means of securing one's most base human needs. If people are not building equity in their own homes, someone else is — why is that a superior outcome?
- s17n 5y ago
  Building wealth via housing isn't about savings, it's about leverage.
ajross 5y ago
> Density is almost always developed as rental units I'm all but certain that's not true. Virtually all non-single-family new construction is aimed at condo sales. Rentals are what you do with depreciating units, not stuff you just built.
- alistairSH 5y ago
  Anecdotally that’s not true here in DC metro. Local to me, most apartment blocks are luxury rentals ($3000/month for a 2-bed). Then there are large townhomes mixed in the same development for sale in the $800k+ range. And not a lot of condo units being built.
jonnycomputer 5y ago
If housing becomes affordable in California, I'd call it a big win. I'd look to Tokyo for an example of where it has worked.

aluminum96 5y ago

> growing the permanent rental class means eliminating access to the only vehicle for building wealth This is a policy choice, and I would argue it's a bad choice. If we strive to make housing cheaper across the board, households will have more money available to save and invest by other means. In particular, the incentives created by housing as an appreciating investment are awful. Owners who have all their money locked up in home equity are incentivized to oppose new development, creating an artificial housing shortage. As a counterexample, consider Germany: virtually all households rent, housing stock is plentiful and affordable, and the middle class is still able to save and build wealth.

mensetmanusman 5y ago
I wish our wealth building was in the form of production machines that families maintain through investment.
- zepto 5y ago
  What do you mean by “ production machines”?
  - dodobirdlord 5y ago
    Presumably investing by buying stock in companies that are economically productive, as opposed to engaging in purely speculative investment like owning land.
  - nitrogen 5y ago
    Probably cottage industry. A machine shop or clothing line in every garage.
teakettle42 5y ago
Isn't Germany experiencing a housing shortage — and soaring rents — in their major cities? That aside, I'm not convinced that encouraging home ownership is bad policy. Home ownership is a direct personal investment in your community, a means of securing one's most base human needs. If people are not building equity in their own homes, someone else is — why is that a superior outcome?
s17n 5y ago
Building wealth via housing isn't about savings, it's about leverage.

ajross 5y ago

> Density is almost always developed as rental units I'm all but certain that's not true. Virtually all non-single-family new construction is aimed at condo sales. Rentals are what you do with depreciating units, not stuff you just built.

alistairSH 5y ago
Anecdotally that’s not true here in DC metro. Local to me, most apartment blocks are luxury rentals ($3000/month for a 2-bed). Then there are large townhomes mixed in the same development for sale in the $800k+ range. And not a lot of condo units being built.

jonnycomputer 5y ago

If housing becomes affordable in California, I'd call it a big win. I'd look to Tokyo for an example of where it has worked.