5 ms·
What I want to know is why can't rent be cheaper in the Bay Area for simple apartments? There's plenty of vertical space to build more housing. But instead ever
by wes-exp 14y ago
What I want to know is why can't rent be cheaper in the Bay Area for simple apartments? There's plenty of vertical space to build more housing. But instead everything is small one or two story homes that cost a million bucks at minimum.
Part of Silicon Valley's original magic was that it was just farmland and affordable to live there. Now it's a terribly expensive place to live. Imagine how conducive to startups it would be (on top of existing success) if people could actually afford to rent a place. Right now all $1000/mo gets you is a BUNK BED! https://www.airbnb.com/rooms/134016 https://www.airbnb.com/rooms/134016 In other places in the US $1000/mo would get you a newly constructed apartment with all amenities and granite counter-tops.
This could be the ultimate startup: just build housing and correct the supply/demand balance!
- rdouble 14y agoBecause nobody can build such apartments due to a unique confluence of all the space already taken, NIMBY zoning codes and the expense of earthquake proof taller buildings.
- wes-exp 14y agoIn that case maybe VCs should stop investing in the next Facebook and instead look at earthquake-proof building technology. Clearly there's a market for it.
- nemothekid 14y agoI absolutely love this logic. If VCs would just invest in it, then they would magically appear! Maybe VCs should stop investing in the next facebook and instead look at cancer curing technology. With the high insurance premiums there's clearly a market for it. And since VCs are the only people with money its obvious that no one else is funding/researching cancer medicine! I really hate this thinking, do you really believe that earthquakes is such a trivial issue that no one is working on it? What the hell do you think the architects/structural engineers are doing at MIT/Berkeley/every university on the planet? They aren't trying to build Instagram for Skyscrapers, I'll tell you that much.
- rdouble 14y agoEarthquake proofing technology exists, it just makes building more expensive. I probably shouldn't have mentioned it. It seemed too vague to just say "it's a pain in the ass and too expensive," even though that is what new construction in the Bay Area boils down to.
- wes-exp 14y agoExcellent point. I suppose I'm just frustrated that the current entrepreneurial hype seems to be overweighted towards time-wasting tools vs. stuff that could really advance society.
- nicholassmith 14y agoWhen a housing spike appears then land becomes expensive, and as land becomes expensive and demand increases prices rise. That's a function of a capitalist focused economy.
- hvs 14y agoLocal regulations often have a very significant effect on housing prices and building. See: New York Rent Controls