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> But the people who live there are oddly irrational and think building will somehow raise the rent because it would be all 'luxury' apartments, and thus 'rais
by theseatoms 11y ago
> But the people who live there are oddly irrational and think building will somehow raise the rent because it would be all 'luxury' apartments, and thus 'raise' the price.
Is this for real? So clearly false. (Increasing supply will somehow increase demand by even more?) I have to assume these ideas have been spread by the vested interests that you've noted.
- morgante 11y agoJust read the news anytime a new "luxury" apartment is built. Lots of anger and protests, despite the fact that addition of luxury stock should in fact decrease prices on other units.
- WalterSear 11y agoThe bald-faced entitlement that has spouted from the mouths of non-techy friends and acquaintances has embarrassed me. I try to hold on to the assumption that they are outliers :(
- PhasmaFelis 11y agoI'm no expert, but isn't that what typically happens with gentrification? Make the neighborhood more desirable by whatever means, more middle/upper-class people want to live there, local landlords raise the rent on existing units despite no actual change in their quality? I've read about folks who worked for years to clean up their low-end neighborhoods, organize a neighborhood watch, drive out the dealers, etc, and as things improve the landlord jacks the rent up until they have to move to a slum area again. That's not about "luxury apartments" specifically, just about how manifestly screwed you are if you're not at least middle-class.
- morgante 11y agoGentrification often comes down to increasing demand without increasing supply. If supply weren't artificially restricted, it would be profitable to expand the housing stock instead of completely displacing existing residents.