5 ms·

They’re both issues contributing to rising housing costs.

epistasis 5y ago
High wages would not increase housing costs, unless there was insufficient housing. We should be fighting for higher wages everywhere, not limiting them because we gave away all our power to landlords.
- sockgrant 5y ago
  High wages won’t impact a housing market with infinite supply but that’s not reality. When there’s a lack of supply then the top earners set the market. When top earners make more then prices are higher.
JumpCrisscross 5y ago
> They’re both issues contributing to rising housing costs Do you think Detroit is celebrating the demise of its automakers for having reduced property values? Bay Area homeowners are lords who convinced their peasants that the merchants are eating their lunch.
- long_time_gone 5y ago
  > Do you think Detroit is celebrating the demise of its automakers for having reduced property values? The automakers aren't gone, they just moved out of the city and took the jobs with them. Detroit home values also were not as inflated as San Francisco home values. Sometimes two things are actually different.
  - JumpCrisscross 5y ago
    > automakers aren't gone, they just moved out of the city and took the jobs with them The transmission mechanism between industry and home prices is employment. The people praying for an exodus of tech workers should also be prepared for the impact it would have on the public purse.
    - long_time_gone 5y ago
      California's reliance on state income taxes over property taxes should help soften the blow.
      - JumpCrisscross 5y ago
        > California's reliance on state income taxes over property taxes should help soften the blow Assuming someone leaving the Bay Area will go elsewhere in California. And even if they move to e.g. Sacramento, why would their tax dollars continue going to the Bay? Their votes moved with them.
        long_time_gone 5y ago
        It's kind of beside the point, but it's because of how California collects taxes from citizens. Property taxes are artificially low due to Prop 13. In order to collect needed taxes, California has instituted a high (very graduated) income tax rate. Income taxes are collected by the state and property taxes typically by the county and/or city. In my state, Illinois, we have the opposite problem. Our state income tax is a flat rate (4.95%). In order for politicians to raises taxes, they target property taxes. The result is one of the highest property tax rates in the country.
kspacewalk2 5y ago
Sure, buy one (well-paid techies) is a minor, possibly vanishingly minor cause, and the other (artificially restricted supply) is the major, fundamental root cause.
- sockgrant 5y ago
  Would a housing supply shortage in Mississippi produce equally priced housing as a housing shortage in San Francisco?

High wages would not increase housing costs, unless there was insufficient housing. We should be fighting for higher wages everywhere, not limiting them because we gave away all our power to landlords.

sockgrant 5y ago
High wages won’t impact a housing market with infinite supply but that’s not reality. When there’s a lack of supply then the top earners set the market. When top earners make more then prices are higher.

JumpCrisscross 5y ago

> They’re both issues contributing to rising housing costs Do you think Detroit is celebrating the demise of its automakers for having reduced property values? Bay Area homeowners are lords who convinced their peasants that the merchants are eating their lunch.

long_time_gone 5y ago
> Do you think Detroit is celebrating the demise of its automakers for having reduced property values? The automakers aren't gone, they just moved out of the city and took the jobs with them. Detroit home values also were not as inflated as San Francisco home values. Sometimes two things are actually different.
- JumpCrisscross 5y ago
  > automakers aren't gone, they just moved out of the city and took the jobs with them The transmission mechanism between industry and home prices is employment. The people praying for an exodus of tech workers should also be prepared for the impact it would have on the public purse.
  - long_time_gone 5y ago
    California's reliance on state income taxes over property taxes should help soften the blow.
    - JumpCrisscross 5y ago
      > California's reliance on state income taxes over property taxes should help soften the blow Assuming someone leaving the Bay Area will go elsewhere in California. And even if they move to e.g. Sacramento, why would their tax dollars continue going to the Bay? Their votes moved with them.
      - long_time_gone 5y ago
        It's kind of beside the point, but it's because of how California collects taxes from citizens. Property taxes are artificially low due to Prop 13. In order to collect needed taxes, California has instituted a high (very graduated) income tax rate. Income taxes are collected by the state and property taxes typically by the county and/or city. In my state, Illinois, we have the opposite problem. Our state income tax is a flat rate (4.95%). In order for politicians to raises taxes, they target property taxes. The result is one of the highest property tax rates in the country.

kspacewalk2 5y ago

Sure, buy one (well-paid techies) is a minor, possibly vanishingly minor cause, and the other (artificially restricted supply) is the major, fundamental root cause.

sockgrant 5y ago
Would a housing supply shortage in Mississippi produce equally priced housing as a housing shortage in San Francisco?