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When you're severely constrained by where you can build thanks to NIMBY, you always build whatever has the highest margins i.e. luxury 1bd condos
by trinovantes 5y ago
When you're severely constrained by where you can build thanks to NIMBY, you always build whatever has the highest margins i.e. luxury 1bd condos
- azinman2 5y agoThat's actually perfectly fine. The more you build for the top end, the more you pressure release on the lower end.
- trinovantes 5y agoThe people buying luxury condos are usually single professionals who previously lived with their parents. Them moving out of their parents homes don't add more housing supply to help the homeless.
- azinman2 5y agoFirst, I'd love to see the data to support that. It's hard to imagine a single professional doesn't rent first and goes straight to buying a condo, especially in the North America where people generally move out at 18. Second, if they're buying a condo versus paying rent, that's still good because it leaves less price elastic renters in the market. You can to get those who are willing to pay much more into something higher end versus them taking the bottom and increasing its price (which is what's happened in SF).