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submitted 2 days ago by [email protected] to c/[email protected]
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[-] [email protected] 3 points 2 days ago

So...unregulated Capitalism to the rescue, then? You know that's not actually going to solve the affordability problem...right? You're just going to have a lot more, really expensive housing, that only the wealthy can afford...and a fucked up environmental mess to clean up, on top of that.

[-] [email protected] 4 points 2 days ago* (last edited 2 days ago)

Do you even live here? It’s the same attitude that’s gotten us into this mess. All the same arguments that they give at the community meetings where they prevent housing from being built. California is run by democrats with a super majority. People on the left make all the same arguments as you. We still have a massive problem. The people who benefit from the paralysis this creates are those who bought their homes for $80,000 in the 80s and now watch their $2 million home become a $4 million home.

Here’s the story. Housing is already really expensive and already something only the wealthy can afford. Normal people are either splitting rent 10 ways or living in cars and RVs on the streets. The situation can hardly get worse.

Developers need to be able to build, and they need to be able to build a lot. The housing crisis is a supply and demand problem. And, we need a megaton of supply. Let the developers build “luxury” apartments. That’s stupid marketing anyway and when they’ve all built “luxury” apartments to the point where there is a glut of them housing prices will moderate. In the interim, the people paying high prices for old housing stock will move into these newer nicer buildings, freeing up the old housing stock. And, due to regulations the newer buildings must include some percentage of affordable units. You’ll probably like that, though I don’t think it’s a great system as the income limits are rock bottom to get in and you have to win a lottery to be chosen. People wait 20 years for it, but ok.

By the way, the status quo doesn’t have to defend itself under CEQA. And, what are the environmental impacts of that? The same law is used to block projects good for the environment, like high speed rail and public transit. The cost has blown up in part because they’re fighting all these lawsuits.

[-] [email protected] -1 points 2 days ago

The housing crisis is a supply and demand problem.

No. It isn't. Not in any practical sense of the concept, anyway.

The only way real estate would be subject to the rules of supply and demand, is if you could find a way to build so many new properties, that demand was overshot to the point that you literally could not sell your property for any asking prices. Only then would people be forced to lower that price. That is an impossible goal.

Real estate will only get cheaper by regulating the price. It needs to be treated as a regulated commodity, and sold for an agreed upon asking price. Allowing the market to dictate that price, will always lead to a lack of affordability, regardless of supply.

[-] [email protected] 2 points 1 day ago* (last edited 1 day ago)

It is a supply and demand problem. Man, I’m pretty left, but it always appalls me the way many on the left do not understand basic economics. California’s population was 23 million in the 80s. It has effectively doubled today without a meaningful increase in the supply of housing. No amount of price controls will get you more housing to put people in.

If there are five homes and two families that need a place to live. Those landlords are going to compete with each other to incentivize the families to move in to their property by lowering prices. If there are two homes and five families, whichever families are willing to pay the most are the ones who will get to have housing.

[-] [email protected] 1 points 20 hours ago

I think you missed the point of what I was saying. It won't matter how many houses you build, if the price is dictated by whatever the last house in that area sold for. This is then reinforced by local property assessment and taxation systems, that effectively "lock-in" the new property values at the increased rate.

Those prices are never coming down on their own. They will only continue to rise. The only way to "out-supply" that trend, would be to build so many houses that demand drops to zero for an extended period of time. And that is never going to happen, for what should be obvious reasons.

This is far beyond "basic economics". It's way more complicated than that, and is only marginally dictated by supply and demand. Those "basics" would have to overcome some nearly impossible conditions, in order to have any effect on affordability.

this post was submitted on 01 Jul 2025
18 points (95.0% liked)

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