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Who hasn't heard of the famous trickle down effect in housing... Where I live, building affordable housing for low and medium income is at the moment financial

Who hasn't heard of the famous trickle down effect in housing... Where I live, building affordable housing for low and medium income is at the moment financially unattractive, so it isn't undertaken in the numbers required to meet projected demand. Offering luxury housing for the small segment of the population able to afford it, won't make a difference. https://www.reuters.com/markets/europe/german-housing-shortage-hits-highest-level-20-years-zia-2023-02-14/ https://www.reuters.com/markets/europe/german-housing-shorta... https://www.reuters.com/markets/europe/german-home-building-permits-plunge-industry-calls-stimulus-2023-09-18/ https://www.reuters.com/markets/europe/german-home-building-...

sokoloff 3y ago
Won't make any difference at all? Or won't make enough of a difference for you to care about (or to support) it? To the extent that someone in a less expensive form of housing vacates it to take newly built luxury housing, it seems like the marginal effect from that luxury unit existing is to increase the supply of total housing and of more moderately priced housing by exactly one unit. (To the extent that new luxury housing exclusively attracts outsiders to migrate into the city who otherwise wouldn't, it doesn't help. I doubt that this exclusivity holds.)