LogFAQs > #979595355

Smashingpmkns posted...

Really not sure what "affordable housing" even entails in this area. Like both of those areas are still going to be million+ dollar properties lol end of the day its rich people moving in on rich people.

Rich people will pay to be where they want to be

when rich people move into luxury condos or whatever, they free up less expensive housing in other areas

when there isnt a supply of high end housing for the rich people, they move into the next level down of housing to be near the places they want to live

https://jbartlett.org/2024/02/how-building-more-luxury-apartments-helps-the-poor/

Building luxury or higher-end apartments draws higher-income renters out of yesterdays luxury apartments and into the new luxury apartments. Increased vacancies in yesterdays luxury apartments attract higher-income residents whove been living in mid-level apartments. As new construction creates more vacancies, rents come down. That effect filters throughout the housing supply, lowering rents all the way down. Economists call this filtering, and its an effect thoroughly established in academic and industry studies of rental housing markets.

Theres no doubt that filtering occurs when enough new apartments are built. It cant occur, though, if government prevents developers from creating those new high-end apartments. The problem in recent years has not been the creation of too many high-end apartments, but too few.