No-Ganache7168 OP t1_jecwj1o wrote on March 31, 2023 at 2:20 AM

Reply to comment by Unique-Public-8594 in Proof that capitalism won’t solve the affordable housing crisis. by No-Ganache7168

There are more apartments but it’s not affordable. There’s a very large new development underway but given the cost of new housing I’m sure the rent will be market rate. Why would a private developer opt to lose profits? Makes no business sense.

The local affordable housing organization purchased 25 of the new apartments with a few million in grant money, which will add to the affordable housing pool but we need more. Here’s a link to one of the larger rental companies if you want an idea of what’s available on the open market https://gmmvt.squarespace.com.

ChocolateDiligent t1_jee5t2i wrote on March 31, 2023 at 11:10 AM

You have to think outside the profit motive to understand why developers would provide affordable housing.

Traditional_Bank_311 t1_jed6hwu wrote on March 31, 2023 at 3:45 AM

Affordable housing is market rate housing, it’s just a low rate.

ChocolateDiligent t1_jee5yez wrote on March 31, 2023 at 11:11 AM

Yes it is, by the real question is why would it be lower if not profitable? Answer: Good regulation. Of course this logic assumes that you agree housing is a human right.

HeadPen5724 t1_jeehz5i wrote on March 31, 2023 at 1:02 PM

Current regulations are what dissuades people from building more affordable housing. When you need to put up 6 figures just to get to the permitting proc as with no guarantee of actually getting those permits that has to be added on to what you charge for the development. The state caused the problem, expecting them to fix it with more regulations is a bit silly IMO.

ChocolateDiligent t1_jeeq3bh wrote on March 31, 2023 at 2:04 PM

Simply saying it ‘Dissuades people’ doesn’t speak to the motivations of why people would build affordable housing do in the first place, which is profits. As long as there is a profit motive, housing will remain a privilege to those who can afford it and this it not a unique problem to our state and our regulations.

HeadPen5724 t1_jeermtc wrote on March 31, 2023 at 2:14 PM

People aren’t going to build houses just to lose money???

ChocolateDiligent t1_jefskwc wrote on March 31, 2023 at 6:16 PM

It’s not losing money if there is a subsidy and regulations for rent control. Maybe not as profitable and I am fine with that, we need to stop treating housing as an investment made to profit developers and investors. There are plenty of models for this type of public housing where standards of living are much higher than ours, and where housing is guaranteed as a human right.

Necessary_Cat_4801 t1_jefkssk wrote on March 31, 2023 at 5:25 PM

Market rate is now not at all tied to wages in the area, so "market rate" in Morrisville probably looks a lot like "market rate" in suburban San Francisco. It's affordable for the work from home crowd but no one else. The destruction of Vermont's workforce continues.