[dsfyu404ed]

>The last thing one should do to solve housing inequality is to intentionally buy a lower priced home

And driving demand for luxury condos (or whatever) is better? Then you're giving an incentive for some developer to bulldoze the cheap "blighted" homes and apartments to make more luxury condos or overpriced new townhouses, or whatever.

There's no winning here.

[tathougies]

> And driving demand for luxury condos (or whatever) is better? Then you're giving an incentive for some developer to bulldoze the cheap "bliAnd driving demand for luxury condos (or whatever) is better? Then you're giving an incentive for some developer to bulldoze the cheap "blighted" homes and apartments to make more luxury condos or overpriced new townhouses, or whatever.

No you're not. If you buy a luxury condo, you have reduced demand for luxury condos, since there's one less individual who both wants and can afford a luxury condo. If they build enough luxury condos as people who can afford them, then eventually it's no longer profitable to build luxury condos, and they'll have to concentrate elsewhere. However, the false restriction of the market enabled by policies such as 'neighborhood preservation' and lack of funding for rapid public transit means that development companies can basically make their entire year's profit only meeting the demand of the rich.

(Also, every new development is going to be branded as a 'luxury condo'. No one sells a 'boring old condo', ever).

> There's no winning here.

Yup. If you define 'winning' as 'I don't want my purchase of something to affect the price of similar things', then certainly, you cannot win.

[scarface74]

Also, every new development is going to be branded as a 'luxury condo'. No one sells a 'boring old condo', ever

This is true everywhere. Builders are not going to build cheap houses. My wife and I were looking for a house three years ago. At the time, it was only three of us - including my 15 year old step son. We were looking at buying in a county in the Atlanta burbs. We had two choices - old small houses being sold by the relatively few people who lived their or buy in one of the many neighborhoods where builders were building new houses. We purposefully chose the cheapest, smallest floor plan offered by the builder - and even that was over 3000 square feet, five bedroom. I’m not trying to humble brag. It was less than 330K all in and we only needed 5% down. Any software developer with 5-7 years of experience could easily afford it - especially a dual income couple.

[creatornator]

That's a backwards interpretation of demand. Buying a good has the effect of increasing scarcity and thus increasing price.

You could just... decide not be in the market, despite being able to afford it. Market price is defined by what people are willing to pay for and sell for. If you are not willing to pay anything for a luxury condo, that reduces the price for everyone by making it less scarce.

You don't have to buy all the luxury condos in existence to eliminate the market. If people decide not to buy them, there is no demand, by definition.

[jonathankoren]

Housing trickles down to an extent, for lack of a better term.

Luxury condos lose their luster, and then become just regular condos. Regulars become cheap. It's effectively entropy. Also, people that can afford to live in a luxury home, don't want to live in a meh, or even crappy home. Yet, if they can't get a luxury home, they settle the meh one. Since they can pay luxury prices, the meh one becomes more expensive, and the less well off get frozen out, because they can't compete.

If you build at the high end, or more accurately "market rate", not only can developers recoup the cost of construction, but you're also taking pressure off the meh and crappy houses, because the people that can afford luxury prices, take the nice home. Also, those currently live in what was considered "nice", upgrade to the new luxury home, because they're now in downscale, thus freeing that house and and lower the prices.

https://ggwash.org/view/68496/why-are-developers-only-buildi...