This is a fantastic article.
Burdensome regulations on housing construction have caused costs to skyrocket. Minimum lot sizes, setback requirements, square footage minimums, floor-area ratio restrictions, overzealous height restrictions, parking requirements, abuse of environmental reviews, historic designations, community reviews, overzealous MFH requirements (like double-stair), below-market mandates, all have worked together to constrain supply, leading to skyrocketing costs.
It's the single most important economic issue for me. We need a nationwide effort to ease these restrictions, or we're just going to continue to see rents eat up more and more of young people's earnings.
Just curious, are there any regulations on housing you agree with? There tends to be belief that housing regulations exist to limit supply. Let's not forget that many of these encourage safety and are cost effective ways to increase the quality of life of the residents. If we take deregulation and cheap housing to the extreme we end up with shanty towns.
None of the things he mentioned have anything to do with safety.
Environmental review, community review, and MFH standards all have something to do with safety. It's not like root comment is arguing against fire hydrants or carbon monoxide detectors. I'm just arguing not to throw the baby out with the bathwater.
We have zoning and internationally recognized building safety codes already.
Our current housing emergency happening everywhere is a pretty good indicator that we should be much more aggressive about trimming back the regulatory state which has ossified our cities.
Your argument doesn't really make sense because the problem isn't lack of houses or apartments, there's plenty of places to put everyone. The problem is one of affordability. The costs of stuff that already exists and has existed for ages isn't really tied to the current cost to build, even if we buy the specious argument that all regulation raises costs and those costs are inevitably passed directly to tenants.
supply and eemand sets rents. You you rent perfecly good existing houses cheap in rural areas. Nobody wants to like there.
There is no reason to think there is enourh room for everyone who wants to like in San Francisco, and statistics prove they heve not been building much. Mean while in other states we find areas of demand where housing is not expensive. Where I live you can rent one bedroom apartments for under $1000, mohe in won't be until spring as the building is still under construction. The owners are planning on starting the next building when this is done. That is what allosing building does.
Supply, demand, and cartels like Realpage.
Cartel's can't just magically set prices.
They can withhold supply, and that might have an effect on market prices.
You can't pay the mortgage on a place you're not renting out though, so they mostly can't withhold supply.
It applies more to things like retired people living by themselves in a 3 bedroom house.
OK.
Though if they can't withhold supply, how are those cartels supposed to hold up prices, then?
They don't, it's not real.
(Except that they can prevent construction of new units through zoning.)
Ehm, what? Of course cartels can magically set prices. That's what a cartel is for: to make collusion easier.
Real estate has very distributed ownership and none of them are motivated to form a cartel.
The only way they can maintain one is through legal force. Zoning laws are almost entirely that force; they're a way to establish a cartel of homeowners.
This is just factually not true. There is plenty of empty homes, apartments and condos to house everyone. There are many units kept empty rather than lower prices. It is a myth that supply and demand sets prices.
There is also the effect of rich people needing a place to stash money and not wanting to bother with tennants
Housing activists in Melbourne have been campaigning about that for years now
I did not believe that was true until I stumbled on it happening. A rich lawyer, a salary far too big to spend, so they collected (empty) houses. They did not care about cash flow
A tax on empty houses in areas with accommodation shortage at worse cannot hurt and at best could free up a lot of accommodation
This comment makes me really sad; it's someone who wants to help but ends up hurting.
It would be better to say that rents are lower in rural areas because there is either more supply or lower median salary.
That isn't true though. Our housing emergency is limited to places that are growing and thriving. There isn't a housing emergency in Detroit or much of the midwest for example, just not many are thrilled about moving to those places (or want to leave them as soon as possible).
Those places that don't have housing emergencies generally have just as bad regulations, and would have the same problems the instant they became appealing enough to move there. Eventually you run out of built out sprawl.
If American population was equalized across these other cities, there would be less pressure on the few hot places everyone wants to move now, since our population isn't growing so much these days.
Manhattan is not a sprawl and a very desirable place to live, with super high rents to boot. Hong Kong, Seoul, Shanghai, and even Tokyo are the same, so I'm not sure what you are trying to claim here. Out of all those, only Tokyo does well, but that wasn't the case in the 80s and is on the basis of a moribund economy and a not growing national population (one wonders when Seoul and SH will follow). IF you want to solve your housing emergency, limit growth in some way (or at least, make sure residents don't have as much money to bid up housing).
Those cities are actually impossible to have in America (yes, including Manhattan), because of zoning laws and various other laws. Manhattan is only allowed to exist because it's grandfathered in and the local laws allow it. Such a city could never be built anywhere else in the US without some huge changes in legislation (not to mention local culture, since that drives the local legislation).
Tokyo works because growth isn't limited: it's very easy to build here, unlike in the US. Tokyo builds hundreds of thousands of new housing units every single year, while the US struggles to build any. This is entirely because of regulations.
More about Tokyo new units here: https://rstudio-pubs-static.s3.amazonaws.com/361409_dcd56370...
Title = How Tokyo built its way to abundant housing
TL;DR: Since 1995 (yes, during the lost decade) they are building ~150k new "dwellings" per year. Wow.
How many are they tearing down to rebuild? Buildings only last ~20-30 years in Japan, so a lot of those are just replacing something that was torn down.
This is a myth in central Tokyo.
Fun fact: the US and Italy have about the same number of elevators, because it costs us about ten times more to build one.
I've seen be some terrifying elevators in Italy.
Japan's economy is growing again (Nikkei is now at the level it was in 1990) and Tokyo's population has always been growing.
…but the rent isn't, because they allow infill development.
This makes about as much sense as fucking for virginity
Zoning is already pretty bad (at least in the US), and doesn't really have anything to do with safety.
In the sense that even without zoning laws, there were already public nuisance laws that wouldn't have allowed you to open a coal fired power plant next to a Kindergarten.
Zoning laws have a lot to do with safety & public health. Industrial zoning is far away from residential because factories produce pollution.
Edit: Some parts of zoning law has to do with safety/health. Some parts don't. Some parts are about more than one thing.
When I was growing up there was a chemical fire in a factory in town. People were evacuated. Luckily, very few homes were evacuated because zoning laws kept homes far away from the factory. The residential area that was evacuated was low density.
The point I'm trying to make is that there is some value in some of these rules.
Okay, what is the safety reason my barber can’t operate out of a room in his house?
Side answer. This kind of regulation lifts GDP by mandating some sort of economic activity. A barber in a room in his house means less rental, less money for commercial real estate company, less money spent buying "commercial" chairs and commercial chemicals. And thousands of other things I can't even fathom as the scope of this problem is huge and so intertwined with all other economic activity.
That’s nonsense. It does not lift GDP any more than breaking windows does. It redirects labor and capital from one use to another.
That's easy: your barber operating a business out of his house will result in customers coming to your neighborhood, and that might bring "those people" around, and we can't have that.
That's ridiculous. Those people can't get even get to the neighborhood because the residents have gone out of their way to eliminate public transit (which is for poors).
No reason. Countries like Japan have reasonable zoning, meaning industrial uses are separate, but commercial and residential is largely interspersed. Which is great!
Usually when people discuss zoning it excludes things like industrial zoning and focuses on single family zoning vs multi-family zoning. In this case, yes, zoning needs to be deregulated. Zoning for housing should be zoning for housing and whether it is single or multi family shouldn't matter. But we should keep the industrial zoning from being put next to an Elementary school.
Yes, there's some value in some of these rules.
However by and large, the value that would be provided by zoning is already provided (and used to be provided) by other rules not falling under the bucket of 'zoning'. Especially not 'Euclidean zoning'.
Pollution laws protect against industrial operations polluting other areas, not zoning.
The real "pollution" they zoning was invented to solve was the "pollution" of residents of apartments living close to wealthier people. Seriously! Check out how the original Supreme Court decision phrased its motivation:
Here's a more extensive analysis from an org purporting to represent real estate, the source of much historical support for this sort of exclusionary zoning:
https://cre.org/real-estate-issues/americas-sordid-history-o...
I mean, the "International Building Code" is a little bit like the "World Series"
https://en.wikipedia.org/wiki/International_Building_Code
Setbacks, parking minimums and floor area ratios have nothing to do with safety. Community reviews have absolutely nothing to do with safety.
Side setbacks absolutely have an effect on fire safety (a greater distance gives less propensity to ignite the neighboring building and provides access with which to fight the original structure fire).
Front setbacks and lot area coverage ratios have a more minor version of this same effect from fires across the street. It takes a pretty good sized fire to ignite the building across a street, but as density increases and more of a lot's area is able to covered with structures, the chances to get a pretty good sized fire going do increase.
Ya. My setback is 3 feet, definitely just a margin for fire safety. I wanted to put an awning in but couldn't because it would be too close to the fence of my property boundary (I live in a town home that abuses the 3 foot setback to maximize living space).
I have minimum lot size of 5 acres. Can't see the wisdom in that one. I also have a minimum square footage size. $20,000 impact fee just to build a house and I receive no utilities or city/ county services.
I wish more than anything we could legislate the fee structures backwards. If the government wants an environmental impact study then the government is footing the bill for it. Putting it on the builder is stupid and just a way of hiding the budget item in other people's wallets.
Ok, the government will fund your environmental impact study so you can build, but...oh...given their budget they will have it done sometime in 2100.
Sure, but is the benefit worth the cost? Manhattan and denser European cities without those haven't burned down since we fireproofed building materials
And yet other areas let buildings be physically against each other if they're built not to spread fire. Just let everyone do that.
Any feedback brought up in a community review is on official record. I have witnessed safety concerns being brought up in community review multiple times that caused changes to the building plan. In one situation it was a very serious concern about blocking fire truck access to an elementary school.
why didn't the code catch that?
The code doesn't catch anything. People catch violations of the code. Community review is a place people can point out code violations. It's actually extremely embarrassing when this happens to a developer.
Buildings get built with infractions all the time. With the MFH buildings it's actually a point of law to see who gets stuck with the liability -- the person that built it or the person that bought it.
Careful with those absolutes.
In practice, the <environmental stuff> has mostly been used by non-environmentalists to delay development they simply don't like. (This one has to do specifically with CA, but it's not the first time I've seen this complaint.)
"Projects designed to advance California’s environmental policy objectives are the most frequent targets of CEQA lawsuits: transit is the most frequently challenged type of infrastructure project (edging out challenges to both highways and local roadways); renewable energy is the most frequently challenged type of industrial/utility project; and housing (especially higher-density housing) is the most frequently challenged type of private-sector project."
"Our study found repeated examples of intentional efforts to cloak the identity of CEQA litigants behind environmental-sounding names of fake and even unlawful “associations.”"
https://www.planningreport.com/2015/12/21/new-ceqa-study-rev...
I'm clueless on the subject and don't intend to argue the point, but it struck me that the metric that article consistently uses is one that almost guarantees the results: It's not surprising to learn that the categories that have the greatest amount of activity by far are the ones with the most CEQA challenges.
The point would be much stronger if it was made in terms the rate of challenges for varrious project types rather then in terms of frequency of CEQA challenges being that kind of project.
The assumption I'd draw from that, being ignorant of the subject, is that the argument is unsupportable on that more reasonable basis.
From what I've seen of environmental review laws, they mostly just have to do with noise and construction nuisance. Whereas community review is mostly about aesthetics. I don't think these are the tools designed for safety.
Double stair Vs single stair is totally a safety issue
One that much of Europe has mitigated somehow.
By building their buildings out of brick rather than wood. Though its probably overkill here in the states and canada.
Even our wood has so much fire safety chemicals baked in now that it's not nearly as flammable as it used to be. The safety standards should be reevaluated. Plus, I'm sure that there are some developers who would happily build the whole MFH out of concrete if it lets them only use a single stair.
Concrete construction is expensive in the states, although I'm not sure why. 4+1s are common here in Seattle: first story is concrete and commercial, 4 stories on top of that are wooden (we also have the more liberal stair requirements, so I'm not sure what is really going on).
Concrete construction is the common way to build in China (and anywhere in Asia sans Japan), but the techniques they use require a bit of overbuilding and limit their towers to around 34 or so stories. Still, they have two stair cases side by side in those buildings (but I guess given the height, they need them by Chinese fire code standards).
Concrete-reinforced steel is absolutely common here in Japan. Wood is used for single-family homes, though, but anything larger is generally concrete+steel.
Modern condo towers around me here in Tokyo are frequently 50 stories AFAICT. And that's with extremely strict building codes for earthquake protection. I can't tell you about the stairs though, as I don't live in one.
I was in Tokyo recently and didn’t see much talk building growth m, maybe I didn’t go to the right neighborhoods.
China leveraged construction techniques that use unskilled and lower skilled migrant labor, so building height is limited. Other countries that import Chinese and Indian to build (like Singapore) get similar limitations.
It is all about the scenario where you die in a single stair where the second stair would have saved you being probably non existent in c21. Especially as you will have fire doors.
I reckon single is safer: no decision to make as you exit.
I quibble. Mentioned double stair
I thought of Grenfell Tower block
That was catastrophic partly because the one stairwell filled with smoke
You already have shanty towns with all the regulation.
Making housing cheaper also means making higher quality housing cheaper.
We don't really have shanty towns in the states. We definitely don't have a Kowloon Walled City, which is an example of what can happen when no regulations are involved (and somewhat remarkably not burn down and kind of thrive even if still a slum).
https://en.wikipedia.org/wiki/Kowloon_Walled_City
If only we can have something between a McMansion filled North American suburb and Kowloon Walled City.
Hong Kong is super dense and super expensive, Shanghai is similar, but at Mainland Chinese prices. I'm all for density, but anyone who thinks that density alone solves affordability issues simply hasn't travel enough.
Density is a way to deal with expensive housing. Not a cause of it.
Density is a way to make cities more livable and attractive, and to scale up public transit investments.
After you've done all this, you'll find that your city is more expensive than the surrounding cities without, not less.
https://en.wikipedia.org/wiki/List_of_tent_cities_in_the_Uni...
Tent cities != shanty towns. Shanty towns are like semi-permanent buildings, tents are just...tents you buy at REI and then set up at the park with your stuff. We had one nearby my house at the Seattle Ballard commons that lasted during COVID (and is gone now). I wouldn't have called it a shanty town like I saw in the Philippines.
Go to skid row in LA. Going on 50 years or more.
Eh, Skid Row is pretty famous, but if you're willing to broaden the definition a little the US has lots of slums [0].
[0]: https://www.theatlantic.com/business/archive/2015/08/more-am...
Or, much more likely, builder profits higher.
Maybe it's OK if some housing is less perfect and closer to ashanty town. I'd rather live in a shanty town than a cardboard box under the freeway. If nobody wants to live in the "shanty town" nobody will move in and no investor will want to build another one. I sometimes think that the provocative way of putting all this is that we need more slum lords. They filled a need.
It is often more the case that limited supply is an unintended outcome. People just don’t think ahead.
I have been to many city council meetings. Stymieing population growth is an explicit goal. The speakers tend to perceive harms from more people as opposed to pure misanthropes.
e.g. "More people creates more traffic so we should prevent housing to prevent people"
Although, I cannot see their true intents. It is possible the speakers do dislike people, which is not politically popular. Expressing their desire requires making up other tangential causes. Hidden agendas creates engineering confusion. If the goal was truly to manage traffic, an engineer would suggest better bus routes.
The people who attend council meetings are not at all representative of the general myopia that results in so much regulation.
Yes, I have also attended such meetings and interact with NIMBYs. They are part of the problem. General myopia is the bigger problem.
That's possible, but, considering that all the most expensive places in this country were developed in the very way this article is advocating, I'm going to label it as improbable.
Many amongst my friends and family think I'm a bit crazy living in the inner city, but the truth is my equity has skyrocketed, and will continue to do so. Urban dwellings are in high demand. Given that many of these same urban dwellings are illegal to construct now / prohibitively expensive, we've handicapped the ability of the market to meet demand.
I use to look at buying a 60+ year old condo/coop on the west coast, until I looked at the earthquake statistics and safety standards of brick multistory buildings. Now I know why the newer steel buildings cost 2-6x the old brick buildings in the same neighborhood.
I’m doubtful they actually cost more to construct?
Also to enrich union tradespeople. See prohibitions against PEX plumbing and requirements for electrical conduit instead of Romex.
Physical safety (structural integrity and fire safety), noise transmission and ventilation. I think regulations around these 3 aspects can help more than they hurt. Beyond these items, I would be skeptical.
Don't forget about street widths being determined by the ability to turn around fire equipment.
Having streets unable to be accessible by fire response vehicles doesn't seem like a good idea. What would be the alternative here? (genuine question, I'm not from the US)
Smaller fire trucks.
How do you plan to make the fires smaller as well?
Copy paste from Europe, where they are about half the size?
Some possible reasons for why American fire trucks tend to be larger:
* more frequently sent to rural homes, where there might not be an available hydrant, so they need to transport all the water they're likely to need
* same for wildfires
* American homes more likely to be wood+drywall
I would simply have small firetrucks in urban areas, and large fire trucks in rural areas.
The more rural you get, the more likely it is that the fire trucks have been purchased secondhand from urban fire departments that can afford to buy new equipment prior to the existing equipment literally falling apart (I've got an extended family member that runs the fire service for an entire county in a western US state, and often see him when he stops at my house while driving new-to-them equipment from the east coast).
You've also got a lot of volunteer departments where each firefighter keeps their equipment in their own personal vehicle.
Why firetrucks in the US are so large is a good question. In the spirit of Chesterton's Fence, I'd assume that there is a good reason until proven otherwise.
Why "wood+drywall" rather than just "wood"?
Drywall is non-combustible and used as the main component in many fire-rated wall assemblies.
Europe has wildfires and rural areas. How will a large fire truck help you when a wood house is burning? Being grotesquely large doesn't mean they put the fire out faster.
B-b-b-b-but bUY amERiCa
Use two trucks when needed?
This is a really simple fix that the rest of the world does better.
Indeed, this is a thoroughly solved problem thanks to countries like Japan where urban planning typically allows meandering networks of narrow, pedestrian-friendly streets.
This article has some nice points of comparison between typical American firetrucks and a Japanese firetruck: https://www.sfchronicle.com/local/article/Meet-Kiri-the-tiny...
And yet, European cities exist and are fine without wide streets.
Keep in mind that Europeans tend to build with stone / bricks, and Americans tend to build with wood.
Lots of safety regulations stem from that divide. Wood is a bit more flammable.
(I'm not saying the difference in safety regulations still make sense today. I'm talking about one of the historical origins of the divide.)
In the north of Europe it is mostly wood
Houses are still less likely to be build from wood than in the US.
If it makes you feel any better the oldest streets around here are wider than newer ones, because they had to be able to turn a wagon with a team of horses.
This was the seed that destroyed the American city. Roads were humongous 100 years before car was invented. It was fine, a buffer for the smoke and filth of the industrial city, but still multipurpose, accessible. Once cars started driving on these huge expanses, it turned every city street in a highway; dangerous, polluted, noisy, pushing out other uses, ...
That sounds like what they did in Salt Lake City.
We can make them turn 360 degrees like the electric G-Wagon. If upgrading the fleet of firefighting trucks to do so costs less than the value brought by tighter spacing of homes, it’s worth it.
Well, you can learn from other parts of the world, instead of coming up with solutions from scratch. (But yes, if nothing else your solution would probably work.)
If you time your upgrade to the fire engines with when you naturally would want to renew them anyway, then it doesn't really cost much extra.
Hm.. couldn't a fire engine be driven in reverse? It could have an emergency driver's wheel in the back. I have seen crane trucks driven with a joystick from outside the vehicle, so it doesn't seem impossible.
Or it could just be smaller like in the rest of the world.
looks like building heights haven't been held back...
How is double stair MFH overzealous? I can’t control if my neighbor blocks the stairwell with a couch that gets stuck while he’s moving in and now I have no egress if my other neighbor starts a fire.
I’m in favor of greater freedoms, and the freedom to choose a single stair MFH if I want.
But I don’t want.
That is an extremely specific situation!
There is a cost to every regulation. The cost to this one is that housing is more expensive for all Americans. Stress, poverty, and homelessness all lead to negative health outcomes. Taken as a whole, those negative outcomes may very well outweigh the fire safety benefits of double-stair (which have never been proven to exist).
Right, so it sounds like you are in favor of removing the double-stair regulation?
It’s an example. Can you generalize it or should I?
Here's a hypothetical for a two-stairwell building: two couches.
We can avoid this dangerous scenario with a three-stairwell minimum requirement.
Good point. Why do we even bother with two-lane roads and a double yellow line? Such a waste of space. Very contrived to presume there is always a car coming the other way
The US would certainly be a nicer place to live if there were more roads with just one lane, like many older cities and suburbs already have.
Why would you need two lanes in each direction, except perhaps on a highway..? I agree, such a waste of space.
Sorry, but the only thing that will change my mind is a significantly casualty different between single stairwell and dual-stairwell buildings accounting for building age, construction type, property value, and occupant demographics.
Happy to hear evidence-based arguments.
You're comparing a situation that happens all the time (opposing traffic) with one that happens extremely rarely (blocked stairwell in a fire). If anything, you're strengthening my point.
We should design for situations to a level that is appopriate given their frequency and severity. Show me evidence that MANDATING the extra stairwell justifies the huge increase in national housing cost, and I'll concede.
I just dont think it would really help that often. It is not the stairwells that are burning, it is some appartment on a floor below. Your problem is going to be smoke and visibility, not some couch blocking the stair. If those stairs are connected, you will most likely have smoke everywhere and will have no clue if one stair is safer than the other.
A couch and a fire and that couch can't be pushed over or jumped over... That's quite a contrived scenario. I suspect that most of the improvements in the fire safety record of apartment buildings have to do with other factors like materials used, fireproof stair doors, etc etc. The reason I think the two stairs don't do much is that first world countries exist outside North America, they don't have this rule, and their fire safety is just as good or better than ours.
Same reason I'm extremely skeptical that our fire trucks need to be so grotesquely large, despite what the fire departments claim. If there were no countries with a good fire safety record outside North America, like sure, okay, maybe. But they're just as good or better at fighting fires in Europe, and manage to go this with human sized trucks that don't require extremely wide streets, wide turn radiuses, and aren't nearly as deadly for pedestrians as a result. Thanks for existing, Europe, Japan, South Korea, Taiwan etc! One day we'll accept that you to cities, building and engineering better and just copy you.
Not everyone is young and in shape to push couches or jump over them.
If you have mobility issues that prevent you from exiting your building easily then you can move somewhere else. We don’t need to make every apartment building in the country more expensive for this extremely specific scenario.
So even more contrived
You’re 85.
Or maybe they have small children. Wtf man.
I suppose you also think it’s silly for flight crew to confirm people sitting in the exit row are able and willing to help in an emergency.
Couldn’t you just push them out of the way or jump over them?
I suggest reading the article, which is intended to answer this question in depth. It provides concrete examples!
As a safety measure, it doesn’t, unless I missed something. In fact it says there has been barely any analysis
We should require two stairs for single family housing as well.
The elderly and disabled will also need to get furniture up stairs. Not to mention that the housing shortage forces more people to share a house with strangers.
The couch goes in the elevator, not the stairwell.
That doesnt help you because another neighbor is moving out and blocking the second staircase with another couch. This is the reason why you should have three staircases and only two neighbors. Though a problem arises if a neighbor is able to block a staircase and start a fire at the same time. That has to be checked beforehand.
Check out this video, which argues against double stair MFH - https://www.youtube.com/watch?v=iRdwXQb7CfM.
How much have costs increased, and what tells us that it's regulations, not many other causes?
Also, which regulations? Some are more valuable, some less, and inevitably some will misfire. I'm not just going to trust real estate developers, who have their own interests, to meet other needs.
I'm not sure we need more high-end development - those tenants have plenty of options.
In cities, new buildings can impact a community for a century. They should have a say, not just a developer from another city.
The entire article is on the prohibition of single stair multi-family residential.
This is silly. When car makers couldn't make enough cars in 2021 and the price went up, was the solution to ban making new cars? Should we have prohibited making cars with fancy trim? Having enough housing for everyone is the only way to make sure affordable housing exists.
Cities have seen plenty of high-end housing built (afaik), and yet there is still a lack of affordable housing.
Building more expensive homes doesn't seem to increase availability of affordable ones. The idea that it would seems to be another 'trickle-down economics' theory, the one from the 1980s that if we help the wealthy get wealthier, the benefits will 'trickle-down' (turns out, only the first step worked). Reasonably, wealthy people don't see poor housing as an option, though there is gentrification.
Making expensive cars wouldn't seem to result in many more affordable ones.
An aggressive assertion that you aren't thinking, and aren't willing to.
You are mistaken, modern housing construction in major cities is far below historical numbers
I've seen plenty of high-end apartments and condos, etc., but that's a small market and therefore low overall quantity.
They permit office space for more workers than bedrooms. A big clue: pandemic aside, commutes get longer every year.
I see you're versed in the left-NIMBY lingo. No, 'trickle down economics' was an excuse for the wealthy to pay lower taxes. When fancy new housing is built, the property taxes are higher.
I think you're intentionally missing the point. The price came down when more cars could be manufactured.
Err, I just enumerated many regulations I have a problem with in the very post you quoted, and evidence is pretty strong that it's the combined effect of all of those regulations that results in higher costs. [1] I realized I left off overuse of exclusively single-family zoning, which is the worst offender. [2]
Evidence is strong that market-rate construction causes richer residents to exchange their current unit for a higher-end unit, opening up supply at the lower end. [3]
The problem with BMR requirements is the increased costs borne by developers, who have to offset those increased costs by charging more for the market rate units. There's a limit to that market, so fewer units are constructed than otherwise would be. Middle class families are especially worse off, as they neither qualify for BMR lotteries, nor earn enough for the rapidly accelerating market-rate unit. [4]
Further, rents are lower in states that disallow BMR mandates (like Texas) than those that have BMR mandates (like California).
1. https://www.axios.com/2019/08/28/study-californias-land-use-... 2. https://www.cnn.com/2023/08/05/business/single-family-zoning... 3. https://www.lewis.ucla.edu/research/market-rate-development-... 4. https://escholarship.org/content/qt036599mr/qt036599mr_noSpl...
Yet people keep flocking to them dreadful single-family-home-majority cities, happy to pay rent and all.
I don't know anyone starting a family happy with the situation. Most people I know are moving to suburbs only because they can't get 3 bedroom apartments in cities. If MFH's became broadly available I think many new families would flock there.
Everyone I spoke to who has lived with kids in both flats and houses on 600sqm blocks prefers the latter, commute (which commute?) be damned.
I'll guess this is people who can afford a big stand-alone house in a nice area
Or Those who want to know their kids are safe and have a place to play.
Not much use wanting to have a stand-alone place if you can't afford it.
Rural homes are dirt cheap almost everywhere. Yes, choices are made.
A lot of these zoning changes lower the already low barrier for multinationals to build, but does nothing for actual families. I'm presently surrounded by hundreds of empty units priced out of reach because these companies are illegally colluding to fix the price. They may claim ignorance and try to launder responsibility through a series of tech products, but at the end of the day the rent is high where I am because of price fixing.
Sorry I don't understand - why would they be selling units, but also deliberately pricing them too high?
To get more money? https://en.wikipedia.org/wiki/Price_fixing
But they're standing empty. If they're empty, they're not getting any money.
It has to do with the company's balance sheet - their list of assets which they use to borrow money.
If they have 1000 units that they say are worth $1 million each, they can borrow from banks as if they are sitting on $1 billion of assets.
If they sell one of those units at $500K, they now look like they have $500 million, which not only impedes their future borrowing but can trigger obligations to their current lenders.
It would be surprising if they can just not sell things because they're too expensive, and then borrow based on that too expensive price. Why not just have a single one and price it at $1bn?