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Sigh. This canard keeps getting repeated on HackerNews. It's not 2011 anymore, when housing construction was at its lowest because of the overhang due to the
by muzz 13y ago
Sigh.
This canard keeps getting repeated on HackerNews.
It's not 2011 anymore, when housing construction was at its lowest because of the overhang due to the massive real estate bubble.
It's 2013 and a construction boom is under way that is so large that in the next 2 years more housing will be built than in the past 15 years combined.
http://www.bizjournals.com/sanfrancisco/print-edition/2013/05/17/san-francisco-rental-construction-soars.html?page=all http://www.bizjournals.com/sanfrancisco/print-edition/2013/0...
- klochner 13y agoIt's not a canard, it's the ostensible reason for the current (high) state of rental and home prices. That said, it's great news that so many rental units will be made available in the next few years.
- muzz 13y agoYes it is entirely a canard. How many units were built in 2006, 2007, and 2008?
- HelloMcFly 13y agowooster has a good comment looking at some numbers (his second comments is interesting): https://news.ycombinator.com/item?id=6066612 https://news.ycombinator.com/item?id=6066612
- muzz 13y agothanks, yes his data is very useful. figure 3 on page 11 illustrates the point I was making: http://www.sf-planning.org/ftp/files/publications_reports/2011_Housing_Inventory_Report.pdf http://www.sf-planning.org/ftp/files/publications_reports/20...
- grbalaffa 13y agoEven though it was two years ago, we're still feeling the after effects. There is a considerable lag time between approving new construction and actually getting some built. One bad year (such as 2011) can cause lasting pain for many years afterwards. 2011 still feels very much like the present.
- muzz 13y agoMarkets work. Look at the price of housing from 2007 to 2011, and if you understand the role of price in marketplaces, you'll understand why construction was so low.