2 ms·

Housing doesn't have inelastic demand though. If the city gets cheaper (+capacity) more people can live in it. As well, if it gets too expensive people are pric

by carom 4y ago

Housing doesn't have inelastic demand though. If the city gets cheaper (+capacity) more people can live in it. As well, if it gets too expensive people are priced out and leave. Ask any state about the Californians moving there. We are already at the lower bound. We have already lost human dignity. You either need to afford 1k per month or be homeless. This homelessness is to spare them the indignity of living in a 350 sqft efficiency? Build more housing. Remove parking minimums. Remove minimum unit sizes. End density restrictions. 8 units on every lot.

kelseyfrog 4y ago
Housing has plenty of inelastic demand and it's getting worse[1]. This isn't a controversial statement. 1. https://cepr.org/voxeu/columns/declining-elasticity-us-housing-supply https://cepr.org/voxeu/columns/declining-elasticity-us-housi...
- carom 4y ago
  The article you linked is titled "The declining elasticity of US housing supply", where as all your comments speak about "demand". >The more inelastic housing supply becomes, the more rising demand translates into rising prices and the less into additional housebuilding. My argument is that we should remove barriers to building housing so that increases in demand (it is already very high) translate into more houses. Landlords aren't the problem. The single family zoning that constrains supply is.
  - kelseyfrog 4y ago
    Thank you. My mistake. Either way http://www.nber.org/papers/w22816 http://www.nber.org/papers/w22816 shows statistically significant demand inelasticity with the relevant section being > a simple regression of the log median rental share on the rental price index, recovering a median expenditure share, sy, of 22.5 percent, and an implied price elasticity, εy,p of -0.83. ... The regression line has slope β1 = −β2 in equation (5b), with β3 = β4 = 0 imposed. Both slopes are positive and statistically significant, indicating demand is price-inelastic
    - carom 4y ago
      This is like having a conversation with a wall.

by carom 4y ago

kelseyfrog 4y ago

Housing has plenty of inelastic demand and it's getting worse[1]. This isn't a controversial statement. 1. https://cepr.org/voxeu/columns/declining-elasticity-us-housing-supply https://cepr.org/voxeu/columns/declining-elasticity-us-housi...

carom 4y ago
The article you linked is titled "The declining elasticity of US housing supply", where as all your comments speak about "demand". >The more inelastic housing supply becomes, the more rising demand translates into rising prices and the less into additional housebuilding. My argument is that we should remove barriers to building housing so that increases in demand (it is already very high) translate into more houses. Landlords aren't the problem. The single family zoning that constrains supply is.
- kelseyfrog 4y ago
  Thank you. My mistake. Either way http://www.nber.org/papers/w22816 http://www.nber.org/papers/w22816 shows statistically significant demand inelasticity with the relevant section being > a simple regression of the log median rental share on the rental price index, recovering a median expenditure share, sy, of 22.5 percent, and an implied price elasticity, εy,p of -0.83. ... The regression line has slope β1 = −β2 in equation (5b), with β3 = β4 = 0 imposed. Both slopes are positive and statistically significant, indicating demand is price-inelastic
  - carom 4y ago
    This is like having a conversation with a wall.