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Yes, I'm ignoring your completely unsupported hypothetical about subsidies. You don't need to invent fancy theories to explain rents in SF: we're in a demand b
by timr 12y ago
Yes, I'm ignoring your completely unsupported hypothetical about subsidies.
You don't need to invent fancy theories to explain rents in SF: we're in a demand bubble, driven by the influx of venture-funded tech companies into the city. This is neither new, nor surprising.
- spankalee 12y agoI totally agree that we're in a demand bubble, but it's exacerbated by rent control and the historical difficulty of building new units. This isn't a very fancy theory, it just effects supply and demand. I don't think you'll find many economists who would disagree with the assertion that rent control reduces supply, thus driving up prices. That reduction is caused by people incentivized to stay in a unit when they otherwise might have moved.
- timr 12y agoExacerbated by how much? Is the effect bigger or smaller than the huge, obvious and clearly explained demand changes over the past few years?