4 ms·
Both things can be true, right? The demand side is hosed while at the same time regulation is ~40% of the cost of new multifamily development and ~25% of the co
by gwbrooks 3y ago
Both things can be true, right? The demand side is hosed while at the same time regulation is ~40% of the cost of new multifamily development and ~25% of the cost of single-family development.
Yes to the bubble dynamic. Yes to the far-outpacing-inflation rise in regulatory cost. Yes to the need to build more, particularly starter homes of the sort that are largely rendered illegal by zoning in U.S. cities.
- tmnvix 3y agoAbsolutely. Impediments to new housing undoubtedly have an impact. I just find it a little frustrating that when discussing the accommodation crisis (I say 'the' but there are many) this side of the equation so often overshadows the problems we have created on the demand side. Cheap credit (which favours those with capital). Tax advantages (relative to other investment classes). Speculative sentiment. Lack of effective regulation (e.g. allowing investors to essentially remove properties from the housing market via short term rentals). These are just a few of the demand side issues that get largely ignored when discussion is framed only in terms of a 'shortage'.
- Bostonian 3y agoI don't think the phrase "allowing investors to essentially remove properties from the housing market via short term rentals" makes sense. Short term renters are still being housed. In general, landlords want their properties occupied by people paying rent, whether it's a long-term lease or a daily one (like a hotel).
- tmnvix 3y agoFair enough, though in my defence I don't consider hotels to be a part of the housing market. Short term rentals are part of the same market as hotels in my opinion.