

Priced out of Paris - josephby
http://www.ft.com/cms/s/2/a096d1d0-d2ec-11e2-aac2-00144feab7de.html

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jvm
I find it kind of mind-boggling to read an article like this and not mention
_why_ cities are so expensive. Is it because construction is expensive? No, it
is because restrictive zoning does not permit an increase in supply, meaning
nothing can compensate for the increased demand and prices go through the
roof.

You can be in favor of restrictive zoning and still recognize that zoning
policies are responsible for turning an increase in demand into a dramatic
increase in price.

In the past cities were also highly desirable places for elites to live (think
5th avenue in the 1880's). But at that time the poor could also live there
because construction was permitted. I don't advocate the massive slum-dwelling
of that era, but I think it's important to recognize that it would be illegal
to build Manhattan as it currently is anywhere in the United States now, or
even in Brooklyn, despite intense demand for such density in areas like
Silicon Valley. Essentially, the elite have made it illegal in most cases to
construct their own preferred type of housing.

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ceras
I feel the same way and it drives me nuts. When I bring this up many people
flatout disagree: they either say that the new buildings will be just as
expensive, or (in the bay area) complain about earthquakes. It's a very
pressing issue really exacerbating the effects of income inequality, and the
saddest part is how self-imposed it is.

This whole thing ordeal really makes me wish for mandatory economics courses:
this is one of the simplest, clearest cases of supply and demand, but it's so
rarely perceived as such.

~~~
josephby
Having lived in SF and worked on the peninsula for 5 years, I can say that a
lot of the earthquake proofing stuff is bunk.

Even if one agreed that limiting building heights to 10 stories significantly
reduced quake-related casualties, there are plenty of places around San
Francisco that should have higher-density buildings -- I'm looking at you,
Mountain View.

