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by flopriore 854 days ago
If your dense housing leads to higher housing costs that's actually great news; it means that your city is enabling higher-productivity arrangements that boost local incomes

Take Milan as a counterexample. A single room in a shared flat costs around €700/month, a single-room studio €1200/month. Yet, people on average earn €30,000 a year, which means €24000 after taxes, or around €1800 per month. That's not what I would say increased salaries and productivity.

In Italy, there are serious problems with stagnating productivity and national, collective bargaining. Nevertheless, that doesn't mean rents do not skyrocket in big cities