Quote:
Originally Posted by 10023
Explain these policies.
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Zoning, basically.
Urban affordability is all about supply and demand. In many cities in recent years, there has come to be greater demand for housing in desirable walkable areas than there is supply of housing in those areas. The solution would be to upzone the desirable areas in order to allow supply to keep up. But that rarely happens. This lack of supply has 2 effects:
1. The desirable area itself gradually becomes exclusive to only the wealthy
2. Nearby areas become exclusive too, as wealthy buyers flow to the next most desirable location.
The key to understanding gentrification is that the "battlefront" is not the poor/middle class neighborhood that's gentrifying today. The battlefront is the already wealthy neighborhood where there's big demand for growth, but where zoning laws prevent enough growth from taking place. And so the growth happens wherever it can, which is why gentrification spreads.
People look around and see a lot of new buildings and say "golly, there's so much growth and it's all expensive, why do we need all these new buildings." Well, we need them because even though there are a lot of them, they're still not keeping up with demand. And it's never going to be the rich person who doesn't get the home they want; if we don't build enough new units, displacement of the poor/middle-class happens even faster because the rich are still buying up units, but the sum total isn't going up.
So yeah. Basically, by cowing to NIMBYs and using zoning to prevent/slow growth (especially in the most desirable areas), we gradually make cities unaffordable. But zoning is not an act of god. It's policy that we choose to adopt and could choose to change if we had the political will.