Quote:
Originally Posted by SDCAL
Supply and demand isn't magic but assuming that the problem in a place like SF is a one-pronged solution is unrealistic. The post I was responding to implied simply raising the supply alone to meet demand solves the problems of housing costs without regulations like affordable housing and rent controlls. That's simply incorrect.
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Oh really? Then prove it. Collect and present your evidence, I'm giving some below:
Here's a numerical model that accurately gives SF prices as a funciton of # of units, employment, and wages.
SF construction lowering rents
It's really simple. To decrease prices you need to either:
1.) lower wages
2.) increase unemployment
3.) build more
4.) reduce the cost of building
And actually, 1 and 2, in the aggregate, are the same thing. And 4 feeds directly into 3. 1/2 and 3/4 are.... demand and supply. Surprise!
Evidence clearly shows supply is the main issue. After that, parking requirements, permitting costs, environmental reviews, and delay/uncertainty are probably the biggest cost increases. We should work on reducing all of them without harming safety (i.e., building apartments out of asbestos and using fire prone electrical wiring.)
Imagine tomorrow SF yanked half or even 10% of the food service, beer/wine, and alcohol licenses/permits in the city. What do you think would happen to the price of eating/drinking out? Do you think the consequences could be relieved by creating a lottery issuing "dining out" vouchers to several hundred residents? Sounds pretty stupid, doesn't it? That's what they're doing with housing, though.
Or imagine, tomorrow SF (or SD, or any city) required 10 parking spacing per unit. What do you think that would do to unit prices? Requiring 0.5 or 1 spaces per unit pushes things in the same direction (albeit more gently.)
Quote:
Developers go where the profit is, and it's with the higher end market.
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Oh really? Why are homes affordable in SO many other cities then? Is it because all their developers aren't turning a profit (
)?
Hint: it's because almost every other city doesn't try to zone their city into being an elitist enclave. SF: "we got ours, f$&% everybody else."