
High Rent Sucks. Let’s Build More Houses - yummyfajitas
http://marketurbanism.com/2016/05/10/high-rent-sucks-lets-build-more-houses/
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PaulHoule
It sorta seems to make sense that new building would increase supply and lower
prices, but it doesn't seem to work that way -- at least in states that are
not RTW.

In the case of commercial space you will see that new buildings on the
commercial strip get filled up by chain stores that are capitalized by
publically traded companies. Small companies can't afford the rent in those
buildings.

The countervailing trend to the market theory is the level set theory, which
is that once people get the idea something is worth $X, they believe it is
worth $X. Add new construction at $X+10 and that makes people's price
expectations go up.

What you need is more old buildings, or, practically, rehabiliation and
subdivision of old buildings, but then you will hear from people who want you
to spend $50,000 to put in an elevator to comply with the ADA, funny that
Wal*Mart is always compliant with the ADA isn't it?

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payne92
The problem is not an undersupply of housing, it's an undersupply of housing
where the jobs are.

Jobs --> demand --> develop-able spots are expensive -> housing and rents are
expensive unless the housing is built by a charity.

You can get a very livable house some areas (Detroit) for $20-30k, or even
less.

