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This is why I think we need to stop calling it a crisis and start calling it a war on affordable housing. It didnt get this way by accident.

by pydry 2y ago

renewiltord 2y ago
"Affordable housing" is the brand name for state-subsidized housing in the US that usually has higher than market unit build price with the surplus captured by various affiliated organizations. Novel industrial policy mechanisms like this are always proposed and underperform market solutions.
- rightbyte 2y ago
  My understanding is that buildings that are built to rent out are of higher technical quality than comparable owned apartments, since the owner's plan isn't to take the money and run but is on the hook for upkeep. And thus more expensive to build.
  - crooked-v 2y ago
    I've definitely heard the horror stories about condo builders who halfass the work in a way that will last just long enough for it to get into the hands of ownwers and the owners' HOA. My own building had a lawsuit (before my time) that resulted in the original builders paying for a replacement of the entire building's plumbing.
  - renewiltord 2y ago
    Programs like San Francisco's Local Operating Subsidy Program would not be necessary if the affordable properties covered had higher technical quality (which should translate to lower maintenance costs). The fact that LOSP coverage can go up to 100% of affordable housing operating cost indicates that higher spending is not improving technical quality - if quality were superior, no subsidy to operate would be required.
HumblyTossed 2y ago
Right. And few people involved in real estate have any interest in lowering housing prices. Not builders. Not agents. Not the government. Not your neighbor. Etc.
Workaccount2 2y ago
Affordable housing are the old "luxury" apartments people vacate to go live in the new luxury apartments. Fighting new luxury builds is dumb, because you need them to free up the old builds for lower income.

This is why I think we need to stop calling it a crisis and start calling it a war on affordable housing. It didnt get this way by accident.

by pydry 2y ago

This is why I think we need to stop calling it a crisis and start calling it a war on affordable housing. It didnt get this way by accident.

renewiltord 2y ago

"Affordable housing" is the brand name for state-subsidized housing in the US that usually has higher than market unit build price with the surplus captured by various affiliated organizations. Novel industrial policy mechanisms like this are always proposed and underperform market solutions.

rightbyte 2y ago
My understanding is that buildings that are built to rent out are of higher technical quality than comparable owned apartments, since the owner's plan isn't to take the money and run but is on the hook for upkeep. And thus more expensive to build.
- crooked-v 2y ago
  I've definitely heard the horror stories about condo builders who halfass the work in a way that will last just long enough for it to get into the hands of ownwers and the owners' HOA. My own building had a lawsuit (before my time) that resulted in the original builders paying for a replacement of the entire building's plumbing.
- renewiltord 2y ago
  Programs like San Francisco's Local Operating Subsidy Program would not be necessary if the affordable properties covered had higher technical quality (which should translate to lower maintenance costs). The fact that LOSP coverage can go up to 100% of affordable housing operating cost indicates that higher spending is not improving technical quality - if quality were superior, no subsidy to operate would be required.

HumblyTossed 2y ago

Right. And few people involved in real estate have any interest in lowering housing prices. Not builders. Not agents. Not the government. Not your neighbor. Etc.

Workaccount2 2y ago

Affordable housing are the old "luxury" apartments people vacate to go live in the new luxury apartments. Fighting new luxury builds is dumb, because you need them to free up the old builds for lower income.