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If you don’t build new luxury housing, then the top end goes to the next best thing, and the next to the next best, and so on. Building more helps increase tota
by seibelj 5y ago
If you don’t build new luxury housing, then the top end goes to the next best thing, and the next to the next best, and so on. Building more helps increase total supply which alleviates pressure everywhere.
- dv_dt 5y agoThat step down doesn't necessarily happen at all - old luxury housing may get upgraded in place, or upgraded to higher luxury housing which then becomes less efficient at serving many. The total supply may shrink from serving the luxury market.
- seibelj 5y agoMy larger point is that knee-jerk opposition to luxury housing isn’t helpful, and actually damaging to the cause of increased affordable housing. In the OP you can see how uneconomic building affordable housing is - so build luxury if that’s all that can be done.
- crooked-v 5y agoHow is that "shrinking"? If new luxury housing gets built now and refurbed later, the additional unit count is still there.
- dv_dt 5y agoUpgraded luxury housing often reduces the unit count as well as the number of people housed.