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Suggestions for how a city might arbitrarily lower property values? People are willing to pay $750k for my condo. How does the city convince them they only want
by tedunangst 5y ago
Suggestions for how a city might arbitrarily lower property values? People are willing to pay $750k for my condo. How does the city convince them they only want to pay $500k?
- jtbayly 5y agoBus in homeless people to do drugs and poop on your steps. That ought to take care of it.
- mint2 5y agoNope, that had zero success in lowering SF prices and only resulted in some well off people making very callous remarks at the plight of others. Sure maybe it kept them from going even higher but we don’t have the counterfactual available to ever know.
- austincheney 5y agoIf you need a case study Detroit successfully lowered values pretty dramatically more than 10 years ago.
- civilized 5y agoDetroit had and continues to have an enormous amount of abandoned, decrepit housing that no one wants to buy. Maybe that's why they have low housing prices. I doubt that the city government had much to do with it.
- boring_twenties 5y agoI remember looking at some of those houses. One was listed for sale for $1,500. Not a typo, one thousand five hundred dollars. The catch was that the property taxes were still like $15k a year or something.
- tedunangst 5y agoFollowed by an economic boom as people from around the country moved there for the cheap housing?
- NikolaeVarius 5y agoYou reduce regulation to allow for more units of housing
- zepto 5y agoWhich increases supply temporarily, and demand will keep up because of network effects.
- noahtallen 5y agoIirc, most cities have not been building enough housing to keep up with demand for a lot of time. Is it really the case that we can’t build to keep up with demand, therefore stopping prices from rising as quickly?
- zepto 5y agoProbably. Especially if what you say is true.
- NikolaeVarius 5y agoWhich is a good thing. Encouraging density makes everything more efficient
- zepto 5y agoSure, but that increases value, and hence demand. There are good things about building housing, but reducing prices in desirable areas is not one.
- selectodude 5y agoSan Francisco must exist in some sort of twilight zone where there are 1 infinity people that want to live there and if they build 1 infinity houses, all of the houses will cost 1 infinity dollars. Edit to add: I have no interest in living in San Francisco, so we've fixed the problem. Only 1 infinity minus 1 people want to live there so if you build 1 infinity houses, everybody's house will be worth zero.
- reidjs 5y agoIf there was more supply in your area you may have less success charging 750K and getting a sale in the timeframe you’re looking for. Right now landlords have too much power over renters.
- edgyquant 5y agoThis depends on demand, though. If there are 100,000 people wanting to move there you’d have to build more than 100,000 units which isn’t likely in any US city over a reasonable amount of time.
- cozzyd 5y agoYes, but the 100,000 do not have equal purchasing power, so you don't have to have room for all of them for prices to go down.
- tedunangst 5y agoI mean, the suggestion that was made is that increasing supply doesn't work, so I'm asking what's the alternative plan to lower values without any new building?
- gumby 5y agoBy allowing developers to build a lot more condos.
- pabs3 5y agoCut some purchasers out of the market. For eg disincentivise or ban using properties for investment, especially for corporate investors, hedge funds etc.
- cozzyd 5y agoWell, increasing property taxes or interest rates (or anything else that increased the monthly cost) would reduce the sticker price, but it doesn't by itself make the housing more affordable except perhaps by reducing investment demand. Increasing property taxes in tandem with larger homeowner's exemptions might be more effective in only reducing investor demand (but potentially might hurt renters to some extent, though renting is a more efficient market...). But, building more densely is a better solution...