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by cyberax
38 days ago
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Care to explain the cherry-picking? The average square footage was growing steadily (except for the 2008 crisis) and the inflection point happened around 2012 when the death spiral started in earnest. It has been on the downward trend since then. > Also, firm in a dense city can get better talent, but those negative externalities (and I would argue these externalities are not clearly caused by the mployer) are made up for through increased salaries the firm must pay compared to areas with lower living costs. Except that the increased salary does NOT compensate for the increased cost of living. And firms absolutely don't pay for their impact on infrastructure. My favorite example: Seattle. Each household will end up paying around $150k in additional taxes for the new transit that will benefit primarily dense office holders in the downtown. |
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It is clearly cherry picked because the graph begins in 2015, which (as you can see in the one I linked) is the exact peak of the new build house sizes. A more honest article would show a larger date range.
Additionally, I feel it makes sense that new builds are getting smaller. People are generally having fewer children these days, so there shouldn't be as much need for huge houses.
> Except that the increased salary does NOT compensate for the increased cost of living. And firms absolutely don't pay for their impact on infrastructure.
It may not entirely make up for the cost of living, but in most cases I would say it certainly makes a big dent. And the rest of the difference can just be explained by the fact that people want to live in cities. So shouldn't it make sense that the cost of living is higher in these areas given that there is more demand for them?
> My favorite example: Seattle. Each household will end up paying around $150k in additional taxes for the new transit that will benefit primarily dense office holders in the downtown.
I think it's strange to frame public transit as primarily benefiting dense office-holders. There are tons of other entities in cities besides just companies in offices. It's a public good, and transit generally benefits everyone. Citizens, companies, government, educational institutions, etc.
Also please link to where I can read more about the $150k number.