>The economics of housing development: Private developers will only build housing when it offers an acceptable rate of return
I think affordability is more than just financing and deregulation. Here’s my thoughts on this. Why do so many people pack into such small spaces and live so close together in places like New York City? There are definitely affordable homes outside the city’s limits. It’s not that there isn’t enough housing. It’s that people want to live somewhere with good jobs, quality schools, and other amenities. You’re not going to find affordability in big cities because rent and housing prices correspond to the market values.
jiggajawn on
In addition to what the other commenter said, I think the author makes some decent points.
I also think that they aren’t giving enough credence to how zoning can allow for cheaper development that do pencil out for higher returns. Per unit cost to the builder can be decreased quite a bit if they can add 30% more units with fewer parking spaces in a place with high demand that currently has parking minimums.
I guess my point is that even though the author says zoning deregulation isn’t the only the thing needed for more affordability, it is still a piece of the puzzle for affordability.
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>The economics of housing development: Private developers will only build housing when it offers an acceptable rate of return
I think affordability is more than just financing and deregulation. Here’s my thoughts on this. Why do so many people pack into such small spaces and live so close together in places like New York City? There are definitely affordable homes outside the city’s limits. It’s not that there isn’t enough housing. It’s that people want to live somewhere with good jobs, quality schools, and other amenities. You’re not going to find affordability in big cities because rent and housing prices correspond to the market values.
In addition to what the other commenter said, I think the author makes some decent points.
I also think that they aren’t giving enough credence to how zoning can allow for cheaper development that do pencil out for higher returns. Per unit cost to the builder can be decreased quite a bit if they can add 30% more units with fewer parking spaces in a place with high demand that currently has parking minimums.
I guess my point is that even though the author says zoning deregulation isn’t the only the thing needed for more affordability, it is still a piece of the puzzle for affordability.