5 ms·

There's not a shortage of housing, just a shortage of people willing to pay enough. Just like when there are articles about labor shortages.

lmm 3y ago
Nope. If you pay enough, new labour supply opens up - people put off retirement, or work more hours, or.... But no matter how much you pay you can't build more houses anywhere useful.
- missedthecue 3y ago
  yes actually. If you pay enough, new houses will get built! More space will become available. New units will come online. More rooms available for rent. Small old buildings torn down and new bigger ones constructed in their place. There's no shortage of housing just a shortage of housing at a price people would prefer to pay. Just like labor.
  - lmm 3y ago
    > If you pay enough, new houses will get built! More space will become available. New units will come online. More rooms available for rent. Small old buildings torn down and new bigger ones constructed in their place. Zoning laws and planning procedures prevent that from happening anywhere where it would be useful.
a_wild_dandan 3y ago
I suppose there are no famines either, just starving people unwilling to pay for food.
- missedthecue 3y ago
  Mechanically, you are absolutely correct. It's not a mystery why famines never happen in wealthy countries! And just like with famines the best way to resolve the issue isn't price controls on food but to increase wealth.
iteratethis 3y ago
I believe in a variation of your statement: we should stop making already dense places ever more dense. It's that dynamic that makes it an impossible problem to solve. Even if you temporarily add new supply, it will immediately be consumed, and new demand keeps coming in. Every small step of new supply will be ever harder to achieve, and the quality of life will get ever worse. It's a total dead-end. Instead, reorganize society. Instead of 3 mega cities, have 20. Have a 100, across different tiers. Reconsider where work is organized.
- missedthecue 3y ago
  I like to think of it as the induced demand problem, but for housing instead of highways. If 1000 new NYC condos are built, it will induce demand to live in NYC rather than reduce the cost of NYC housing. Some say more people living there is a good thing in an of itself but they are going to be disappointed if their real goal is lower housing prices. It's just like highways. Adding another lane will increase throughput which may be a good end by itself, but it will never cure traffic.

lmm 3y ago

Nope. If you pay enough, new labour supply opens up - people put off retirement, or work more hours, or.... But no matter how much you pay you can't build more houses anywhere useful.

missedthecue 3y ago
yes actually. If you pay enough, new houses will get built! More space will become available. New units will come online. More rooms available for rent. Small old buildings torn down and new bigger ones constructed in their place. There's no shortage of housing just a shortage of housing at a price people would prefer to pay. Just like labor.
- lmm 3y ago
  > If you pay enough, new houses will get built! More space will become available. New units will come online. More rooms available for rent. Small old buildings torn down and new bigger ones constructed in their place. Zoning laws and planning procedures prevent that from happening anywhere where it would be useful.

a_wild_dandan 3y ago

I suppose there are no famines either, just starving people unwilling to pay for food.

missedthecue 3y ago
Mechanically, you are absolutely correct. It's not a mystery why famines never happen in wealthy countries! And just like with famines the best way to resolve the issue isn't price controls on food but to increase wealth.

iteratethis 3y ago

I believe in a variation of your statement: we should stop making already dense places ever more dense. It's that dynamic that makes it an impossible problem to solve. Even if you temporarily add new supply, it will immediately be consumed, and new demand keeps coming in. Every small step of new supply will be ever harder to achieve, and the quality of life will get ever worse. It's a total dead-end. Instead, reorganize society. Instead of 3 mega cities, have 20. Have a 100, across different tiers. Reconsider where work is organized.

missedthecue 3y ago
I like to think of it as the induced demand problem, but for housing instead of highways. If 1000 new NYC condos are built, it will induce demand to live in NYC rather than reduce the cost of NYC housing. Some say more people living there is a good thing in an of itself but they are going to be disappointed if their real goal is lower housing prices. It's just like highways. Adding another lane will increase throughput which may be a good end by itself, but it will never cure traffic.