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This assumes that the ceiling to new unit construction is the market. I don't know Berlin, but in SF the main limiting factor is politics. If the cap is done ri
by milesskorpen 11y ago
This assumes that the ceiling to new unit construction is the market. I don't know Berlin, but in SF the main limiting factor is politics. If the cap is done right, you could keep construction at a similar rate (since you move the market equilibrium down, but not below the ceiling from politics).
- ChuckMcM 11y ago> but in SF the main limiting factor is politics. Yes indeed, and I've watched the SF situation for over 25 years (I live further south in SV). That is part of the reason why I expect this will not have the effect Berlin or its residents want. The politics of stasis versus the politics of change, in SF many politicians vote for stasis, imagining a static city population which changes slowly, with vacancies created in line with people leaving. When in fact the city is trying to grow. I am quite interested to see how it is affected if the "bubble" bursts. My analysis suggests it will suffer a combination of a large loss of tax base and a large exodus of people post 'boom'.