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It's clear that, because people view housing as an investment, supply and demand increases the value of city housing (often to levels that seem ridiculous). Ca

It's clear that, because people view housing as an investment, supply and demand increases the value of city housing (often to levels that seem ridiculous). Can you elaborate on the subsidisation of suburbia? Are there tax provisions that advantage them?

lifeisstillgood 5y ago
I think this is the "StrongTowns" argument - roughly speaking some local / federal government borrows billions and builds a suburban area, roads, sewers, schools, hospitals. Rich white people move in, taxes are collected etc. The marginal cost of the services is covered, but the bonds that raised the money may or may not be. And 2 years later the sidewalk is cracked, the sewers need replacing, the roads need widening, and there is no money - the long term sustainability of a town needs tax revenue from dense living and from local businesses that thrive in density, not businesses that sit thirty miles away at the end of a commute. So the town slowly dies, and another municipality starts to raise a bond issue ... The town was subsidised by a bond issue against National creditworthiness, against a building project with no long term revenue plan and the people living there did not pay for full long term cost of utilities (although to be fair that's the case for most utilities as they all chronically under invest)
- nradov 5y ago
  StrongTowns isn't entirely wrong, but they exaggerate problems in suburbs to advance a political narrative. In reality large, dense cities are more likely to have problems funding infrastructure maintenance and government services due to persistent corruption, mismanagement, and the pernicious influence of public employee unions. Just look at the ongoing fiscal crisis in Chicago.
  - milkytron 5y ago
    > persistent corruption, mismanagement, and the pernicious influence of public employee unions Is this less likely to happen in smaller towns?
    - nradov 5y ago
      Generally yes. Those problems can occur anywhere but the financial incentives for malfeasance are lower in smaller cities. Plus the officials in smaller cities usually focus their budgets on a limited set of core services rather than funding progressive social experiments.

lifeisstillgood 5y ago

I think this is the "StrongTowns" argument - roughly speaking some local / federal government borrows billions and builds a suburban area, roads, sewers, schools, hospitals. Rich white people move in, taxes are collected etc. The marginal cost of the services is covered, but the bonds that raised the money may or may not be. And 2 years later the sidewalk is cracked, the sewers need replacing, the roads need widening, and there is no money - the long term sustainability of a town needs tax revenue from dense living and from local businesses that thrive in density, not businesses that sit thirty miles away at the end of a commute. So the town slowly dies, and another municipality starts to raise a bond issue ... The town was subsidised by a bond issue against National creditworthiness, against a building project with no long term revenue plan and the people living there did not pay for full long term cost of utilities (although to be fair that's the case for most utilities as they all chronically under invest)

nradov 5y ago
StrongTowns isn't entirely wrong, but they exaggerate problems in suburbs to advance a political narrative. In reality large, dense cities are more likely to have problems funding infrastructure maintenance and government services due to persistent corruption, mismanagement, and the pernicious influence of public employee unions. Just look at the ongoing fiscal crisis in Chicago.
- milkytron 5y ago
  > persistent corruption, mismanagement, and the pernicious influence of public employee unions Is this less likely to happen in smaller towns?
  - nradov 5y ago
    Generally yes. Those problems can occur anywhere but the financial incentives for malfeasance are lower in smaller cities. Plus the officials in smaller cities usually focus their budgets on a limited set of core services rather than funding progressive social experiments.