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If this were actually true it would never be possible to build more to make housing more affordable. Rents in a market are typically a percentage of the capital
by TimPC 4y ago
If this were actually true it would never be possible to build more to make housing more affordable. Rents in a market are typically a percentage of the capital investment so what you are saying is roughly equivalent to “building more makes rents go up”. It’s actually the opposite. The demand for density raises the value of land, but the supply of density lowers it.
- throwaway1777 4y agoIt’s not a simple equation. Demand can change based on desirability and other factors. You can make more in rent from a 100 unit skyscraper than a single family home… but the value is mostly in sfh is weighted heavily toward the land whereas with the skyscraper it’s not. Sfh can appreciate while rents go down and population goes up.