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JeromePowellAdmirer t1_j9pqvsl wrote

Reply to comment by Blecher_onthe_Hudson in Want to know why NY metro housing is expensive? Answer in NYTimes OP-ED by Blecher_onthe_Hudson

I stopped reading as soon as they said "monthly rent change." That's such a noisy data set as to have absolutely zero relevance to the topic at hand. It takes a good 3-5 years to construct multifamily housing and the effects should be measured over a similar time span! They should also be measured on a metro area level, not a city level. Plus furthermore the Covid/remote work shock throws all the data out of whack.

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DirectorBeneficial48 t1_j9pxdpv wrote

Dipshit, I also included a median overall, which doesn't have the month-to-month variance.

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JeromePowellAdmirer t1_j9qdyqk wrote

  1. The median overall rent says absolutely nothing about whether a very recent building spurt lowers rents relative to the status quo.
  2. The median Jersey City unit is much newer than in any of those big cities. Unless you account for this your number will be biased high. Compare the rent of an old Jersey City unit to an old Boston unit, Jersey City is not more expensive. A new centrally located luxury unit in Boston is more expensive than a new centrally located luxury unit in Jersey City. Except Jersey City has way more of them. You're only observing Simpson's Paradox.
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