RustedRelics t1_jegm14b wrote on March 31, 2023 at 9:34 PM

Reply to comment by sluman001 in 47-story apartment building is planned above CVS store at 19th and Chestnut by ColdJay64

I don’t think I’ve ever seen rents decrease due to increased housing supply/development — either here or in NYC before moving here. I’m all for more housing in Philly, but it’s not going to bring rents down.

xander_man t1_jegmki7 wrote on March 31, 2023 at 9:37 PM

If building would reduce rent they wouldn't do it. They're doing it because rents are going up anyway.

If they overbuild, they would end up staying the same or going down a little in some markets or segments.

RustedRelics t1_jegnm62 wrote on March 31, 2023 at 9:45 PM

Precisely. And Philly is not one of those markets. (Neither are the other large coastal cities and Chicago)

AbsentEmpire t1_jeh2ywq wrote on March 31, 2023 at 11:39 PM

Philly only has a less than ~5% vacancy rate on apartments. That's so low that the small amount of incoming supply isn't enough to have any meaningful impact on decreasing rates.

The answer to that is that we need to build even more of everything to account for all the demand. The clowns saying we shouldn't build new housing are the same people who bitch about how expensive rent is. They're too dumb to connect the lack for supply with the incoming population, and the subsequent increase in rent.