4 ms·
Developers aren't a cartel, but they respond to incentives just like anyone else. https://www.fresheconomicthinking.com/p/upzoning-predictions-versus-reality h
by BirdieNZ 3y ago
Developers aren't a cartel, but they respond to incentives just like anyone else.
https://www.fresheconomicthinking.com/p/upzoning-predictions-versus-reality https://www.fresheconomicthinking.com/p/upzoning-predictions...
For one example of how upzoning alone doesn't result in developers exceeding the market saturation rate.
To be clear, I support upzoning but I think it should be accompanied with an increase in the holding cost of land, so landowners are incentivised to develop now rather than later.
- astrange 3y agoThat can be assisted with countercyclical housing policy, like subsidizing construction or a public housing developer. The US does tons of this on the demand side already, but of course if you limit supply too hard that just makes everything infinitely expensive.