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If you upzone and increase supply, it becomes a buyers market and landlords have to lower their prices.
by konschubert 3y ago
If you upzone and increase supply, it becomes a buyers market and landlords have to lower their prices.
- ethanbond 3y agoThat’s true totally separate from UBI. No matter what else you do, UBI’s effect will be increased rents. In absolute terms you could overcome this by increasing supply, but 1) nothing about UBI makes increasing supply easier, and 2) UBI would reduce the positive effects on rent achieved by increasing supply. If you want to reduce the cost of living you increase supply. UBI will not affect supply nor demand, it will just affect the existing demand’s ability to pay a higher price universally and knowably. As a landlord, I would be an idiot not to raise rents by $x soon after implementation. Every landlord knows this and so they’d all do it together, no coordination necessary.
- charlie0 3y agoI've noticed in the poorest HCOL areas, you've got several low income workers all chipping in for the rent. There's nothing stopping them from trying to move out on their own using their UBI funds. For first movers, they'll increase their quality of life by living by themselvesor less people, but rent prices would quickly rise. You're right in the housing. The only thing that can drop prices is incresed supply and that's not going to happen.
- konschubert 3y agoI think I agree with you. We need to increase supply by upzoning and speeding up permission processes. That will increase supply, depress prices, and solve a lot of social ill without needing UBI.