4 ms·
This is kind of true, but misses an important point. Builders won't increase the supply if unit price is close to unit cost as their profit would be narrowed.
by tehlike 4y ago
This is kind of true, but misses an important point. Builders won't increase the supply if unit price is close to unit cost as their profit would be narrowed.
This is to say, if materials, labor etc is expensive, affordable housing may not be affordable either.
- eapressoandcats 4y agoGenerally speaking, you’d expect newer housing to be on the higher end no matter what, because people with less money would tend to buy/rent older housing, in the same way that all but the cheapest new cars are mostly bought by the more well off.
- JumpCrisscross 4y ago> if materials, labor etc is expensive, affordable housing may not be affordable either San Francisco's problem is "a worker shortage, long waits for permits, restrictive zoning and high fees" [1]. Three out of four of those are direct results of planning rules. The first, related to the high cost of housing. Issue permits quickly, loosen zoning and make fees low and predictable and you'll see affordable housing. [1] https://www.sfchronicle.com/bayarea/article/SF-is-one-of-the-most-expensive-places-in-the-14888205.php https://www.sfchronicle.com/bayarea/article/SF-is-one-of-the...
- panny 4y ago>Builders won't increase the supply if unit price is close to unit cost as their profit would be narrowed. Sounds a lot like the reasoning behind farm subsidies, doesn't it?