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Trexrunner t1_j8p6370 wrote

>Are you aware... Ultimately, the luxury housing will raise the prices of nearby properties and lots.

I'm not aware, and most who know what they're talking about, aren't aware either.

https://www.planetizen.com/news/2019/06/104783-doubt-cast-induced-demand-housing

https://cityobservatory.org/another-housing-myth-debunked-neighborhood-price-effects-of-new-apartments/

https://marketurbanismreport.com/blog/is-induced-demand-a-phony-theory

https://sf.curbed.com/2020/5/1/21240992/sf-home-prices-supply-skepticism-development-bay-area

https://pubs.aeaweb.org/doi/pdf/10.1257/jep.32.1.3

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SuckMyAssmar t1_j8q646d wrote

“The NYU researchers even concede that some of these concerns have merit—for example, some new housing developments probably really will drive up prices nearby (more on that later), and the paper emphasizes that market-rate development alone won’t fix the housing crisis without the help government subsidized housing.

But Been and her colleagues still believe that “adding new homes moderates price increases and therefore makes housing more affordable”—period.”

Thank you for the sources. I feel like i understand this a bit more. Sounds like we need market-rate and affordable or subsidized housing, not just market-rate. Many commenters mentioned that developers are not incentivized to build affordable housing. How can we incentivize them?

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