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DENSE_ARGUMENTS


                                             September 10, 2019
                                             November   8, 2021

                                             https://www.reddit.com/r/politics/comments/d2677a/cbs_news_poll_warren_overtakes_biden/ezuct2p/?context=3

citrus_slinger commented at reddit:

    "... zoning and permit fees are artificially
    deflating housing construction which leads
    to a rise in housing costs."

I would guess that's a real effect, but the greek chorus you've
called forth is bugging me, so let me hit y'all with a bunch of
points that complicate this situation for me:

(1) The people who complain about zoning rules in the SF Bay Area
    invariably point the finger at San Francisco, which is
    already one of the higher density places. If low density is
    the great evil, why aren't people pointing the finger at
    places down in the Valley that are stuck on the suburban
    dream like Mountain View?

    If places like Mountain View made up their minds to
    be real cities, that could take some of the heat off
    of San Francisco.

(2) Going by rents and tourist activity, it would seem that the
    older, higher density cities built before WWII are very
    popular: how do you conclude from that that this means
    they're in broken and need to be fixed?  My conclusion would
    be that this means we should leave them as they are, and try
    to build more of them.

(3) One of the reasons people object to new construction is
    pretty simple: it's going to suck. Western culture seems to
    have lost the ability to build anything worthwhile after
    WWII. I point the finger at the culture of the housing
    developers, myself: they have no pride of craft and do the
    absolute bare minimum they can get away with.

    They've never seen a rule that they like, and they're
    constantly whining about the great impositions on them that
    make it so haaard for them to build cheap garbage they can
    unload at top dollar in a place with a trendy name.

(4) Econ 101 no doubt has some valuable insights to offer, but
    it's not the last word on anything: there are people who
    sneer at the left for denying "the law of supply and demand"
    as though it's thermodynamics, but consider that:

      o  supply and demand curves have slopes and
         positions that vary for reasons not captured        ECON101
         in the basic theory

      o  you can get slopes that go the "wrong way"--
         a classic example is a positively sloped demand curve
         for high-end perfumes

      o  you really do need empirical data, not just theory--
         e.g. that the data shows that raising the minimum wage
         really does not create unemployment.

      o  Further: supply and demand of *what*?       Suburbanites are
                                                     convinced that
         Housing, okay, but why just housing         restricting housing
         in San Francisco? Why not the Bay           construction is a
         Area as a whole?  Or the United States?     rational way of
                                                     propping up the value
                                                     of their own property.
                                                     "Supply and demand",
thenuge26 wrote:                                     right?

  "It's been studied in the real world for              As we all know, places
  decades, and has never achieved it's stated           with higher housing
  goal of lowering rents. Ever."                        density have lower
                                                        property values--
What people really want from rent control is            just look at San
to slow down the rate of change.                        Francisco...

It certainly reduces the rents
for the people who get rent              If it seems unfair rent control is
controlled places.  Those people--       unevenly applied, maybe it should be
and other people, who don't want to      evenly, and not just targeting a set
see them forced to move by the           of older apartments.
owner raking in a windfall-- are
the ones who vote for it.                   Typically there are exemptions for
                                            new housing to avoid creating a
I have seen some data showing that          discencentive for construction.
zoning regulations tend to drive
prices up somewhat-- but "lowering            But if the usual suspects
rents" has never been a stated                refused to build, the city could
goal of zoning regulations, where             simply get in the development
the idea is more obviously                    business themselves, and cut out
"preservation of character".                  the private developers.

The obsession with prices as the              If it's so difficult to find
only measure of value is another              the right set of tweaks to
version of Econ-101ism.                       modify a market to get it to
                                              do what we want it to in a
                                              particular area, then maybe
                                              we should stop using them so
                                              much.










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