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Rents soar as government continues heavy suppression of new housing construction.
I keep seeing this argument. I see a metric funckton of new construction and they are ALL 400k+ which is a lot for our smaller/mid city. Existing inventory is averaging the same.
Yes some construction happens. It’s still profitable in some cases, especially when the target market is the richest segments of society.
But there could be so much more. They could build two houses on each of those plots of land, and maybe each house is only $250k but you’ve managed to get $500k of real estate out of the same plot of land which (as any good capitalist will tell you) is better than $400k of real estate.
But you can’t do that. Density restrictions. Zoning laws that are way too narrowly defined, ie bloated, and have long since surpassed the “Don’t boil horse carcasses next to a daycare” sort of scenario by which zoning laws are explained in our history books.
Instead of just protecting public health zoning’s now also protecting people’s views, protecting people’s lawns, protecting people’s resale value on their homes.
Like, oh your view of Mt Shasta got blocked by an apartment building? Gee that sucks but it also doesn’t suck that five hundred new apartments are on the market now, weakening the monopoly some local cartel has on pricing and slowing the rise of rent prices.
We have a sort of overton window in terms of how much construction is “a little” and how much is “a fuckton”. Living our lives in this kind of supply crackdown has calibrated our sense of how much construction is a fuckton.
Just imagine that construction you’re seeing … but twice as tall. Perfectly conceivable, even financially favorable to the people who would make it happen, but literally not allowed.
This is an excellent and erudite comment. I'm curious what industry you work in. And did you make up “Don’t boil horse carcasses next to a daycare”? Because I'm fucking keeping it, funniest shit I've read all day. Keep it up mate