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[deleted] t1_j7z8fix wrote

Reply to comment by colourcodedcandy in Median New York rent passes $4,000 a month in January by geoxol

[deleted]

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colourcodedcandy t1_j7zsnii wrote

That's not how things work.

https://www.theatlantic.com/ideas/archive/2021/04/theres-no-such-thing-luxury-housing/618548/

https://www.bloomberg.com/news/articles/2019-06-05/what-adding-luxury-housing-does-to-rents-elsewhere

https://www.thenation.com/article/society/affordable-housing-debate/

https://www.fullstackeconomics.com/p/how-luxury-apartment-buildings-help-low-income-renters

https://www.nytimes.com/2020/02/14/upshot/luxury-apartments-poor-neighborhoods.html

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DarthDialUP t1_j801ds6 wrote

Don't want to sound cynical, but those articles were written by luxury buildings. Those are years old, and it doesn't seem to have any actual proof, just theories floated.

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colourcodedcandy t1_j8138i4 wrote

Yes, all academics and thinktanks publishing this research are actually luxury builders in disguise. Please feed into more conspiracy theories.

https://www.upjohn.org/research-highlights/new-construction-makes-homes-more-affordable-even-those-who-cant-afford-new-units

https://academic.oup.com/joeg/article-abstract/22/6/1309/6362685?login=false

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DarthDialUP t1_j819uof wrote

Imagine, though, if buildings could write? Would be wild. Almost as wild as developers even accidentally helping middle class renters.
Also, to add, this is NYC. Has rent gotten any better, or easier, anywhere outside of the pandemic?
Someone mentioned 2018 as rents going down or something, but practically, who has it better now?

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colourcodedcandy t1_j8261ay wrote

NYC has a housing shortage. When demand fell in proportion to supply during the pandemic, so did rents.

But from what I can see you don't believe in peer-reviewed research, so I think we can call it a day here.

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DarthDialUP t1_j82dlhy wrote

Demand fell because of COVID. If there is more supply, it will immediately get filled up. Unless something like COVID happens again. You need a review for that?

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colourcodedcandy t1_j84h10f wrote

>If there is more supply, it will immediately get filled up.

... yes, and those people won't be competing with you for existing supply.

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DarthDialUP t1_j84obzg wrote

And what would make existing supply drop in price or stay level if existing supply is in demand? What I am saying here is that as long as there is demand, as there is right now, prices will continue to go up. New development will bring new demand, as it has in the past. Covid was an outlier. Prices will continue to rise, people want to be here. Middle class long term renters will get squeezed out. As is tradition.

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coldbruise t1_j806au8 wrote

>Trickle-down housing policy is a farce. In a highly speculative housing market, increasing the supply does not automatically reduce housing costs. When cities permit more market-rate development, developers build more market-rate housing, because that is what will yield the highest return on investment. Especially when labor productivity lags in the construction sector, the profitability of housing production depends on rising rents. Rents are set not based on the quality of a home but on whatever the market will allow. This is why most “luxury” housing is so ugly and poorly built.

> “Affordability” is an abused concept in development deals and local policy-making. Developers receive public subsidies and tax abatements to build market-rate apartments, sometimes with conditions to set aside “affordable” units. Those conditions rarely create truly affordable housing, because the definitions of “affordable” have more to do with what is affordable for the developer than with what is affordable for a working family. Affordability standards are determined by “area median income,” but the area isn’t a neighborhood; often it’s a county or a metro area, and the incomes aren’t limited to tenants but also include those of property owners.

From the linked Nation article.

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