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by vedanta 3252 days ago
This would make sense if there was naturally 'cheap' housing and 'expensive' housing. There isn't. It's just housing. The fish analogy just doesn't work, we're talking about increasing supply of a durable good, not a natural resource. The only way is to make more. I'm sure tons of developers who don't bother playing the bay area would come back if cities lowered their BMR requirements. Leading to better designs, and more units. That plot of land that's designated mixed-use and has a gas station and a strip mall in the sunset isn't getting re-developed because developers know they'd have to do 25% BMR. With 0% BMR, that plot of land gets re-developed into 5-10 housing units. You're counting on prices being high-enough for redevelopment which is another self-fulfilling prophecy, instead of just building normal units. You can have 10% BMR and still get redevelopment quicker.

I would agree about the in-elasticity of the labor market, we're finding out right now. I see plenty of hiring signs around.
1 comments
ubernostrum 3252 days ago
This would make sense if there was naturally 'cheap' housing and 'expensive' housing. There isn't. It's just housing.

So luxury condos and basic apartments either don't exist, or are identical to each other?

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vedanta 3252 days ago
Are they both not housing? Can I not renovate one into another over a few weeks? I give developers more credit. If they want to make money, they need to figure out what the market will bare. And it's not their fault if only enough housing is being allowed that they can get away with making luxury only housing. If more was allowed without BMR conditions, there would be a much less price difference between what you find at avalon vs craigslist. The difference is actually not that much, everything is just very high and unaffordable period. Hence the dilemma we're in.
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ubernostrum 3252 days ago
Can I not renovate one into another over a few weeks?

Unlikely. I strongly suspect you don't actually understand anything about physical construction given your seeming belief that all housing units are fungible. So I'll simply state it for you clear and plain: they are not in fact all fungible.

And it's not their fault if only enough housing is being allowed that they can get away with making luxury only housing.

Ah, it's the evil gubmint's fault. Well, that explains a lot.

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vedanta 3252 days ago
Here's the economist saying housing is fungible, just for you: https://www.economist.com/blogs/freeexchange/2014/04/housing...

Did you read what I said enough to make a counterpoint with new information or thinking? Care to be wrong about other things?

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