People *actually* believe that building more housing doesn't affect housing prices. Wild.https://twitter.com/ScubaForDogs/status/1006606078744854534 …
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If that's true though, and rents are directly tied to supply, why would there be opposition to rent control on new developments? The increase in supply was going to drive the rent down naturally anyway, right?
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Rents are not "directly tied to supply", they are "generally tied to supply". It's not a direct 1:1 relationship, it's a trend. Marketplaces always have pockets of irrational behavior. You are taking "pockets of irrational" and extending it to "markets don't work".
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I am in San Mateo county. No rent control. Pop: 750k If we add 200 units next year rents don't change. 2000 units? No change. 20000 units? Probable change. 200000 units? Complete and utter change.
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There is a point somewhere between 20k units and 200k units where rents will change. The point is imprecise, and it will face some natural human resistance. But the points does exist.
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Why rely on it to occur 'naturally' though? That's the part I don't trust. Why not calculate what the rents SHOULD drop with that increase in supply, and fix the rents at that rate? So there's no bait-and-switch.
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Because it is very hard to predict that number. It's not a 1:1 relationship. Rent drops could result in: - roommate breakups - increased population influx - change in financing for next year's housing builds
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that seems like a cop-out
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“Supply doesn’t affect housing prices” seems like a cop out
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