In a tweet this week, the Welcoming Neighbors Network recommended that pro-housing advocates keep supply-and-demand arguments in their back pockets and emphasize simpler housing composition arguments:https://twitter.com/WNNProHousing/status/1582157909827653636This advice makes an … [Read more...]
How big is the housing shortage?
Land for sale. Photo: appaloosa (CC BY-NC-ND 2.0)Two teams of researchers recently released estimates of the U.S. housing shortage - and they differ by a factor of five. Is the national shortage 20 million homes or just 4 million? With a range that big, both published by pro-housing groups, … [Read more...]
Financialization and housing costs
One common explanation for high rents is something called "financialization." Literally, this term of course makes no sense: any form of investment, good or bad, involves finances.But I think that the most common non-incoherent use of the term is something like this: rich people and … [Read more...]
Why rents aren’t keeping up with house prices
Global house prices have been out of control for quite some time. This has helped to reduce economic growth, increase unemployment and was even diagnosed as the greatest cause of inequality in the developed world in a 2016 paper by Matthew Rognlie. However, rents have failed to show the same … [Read more...]
Latest rent research
A recent paper by UCLA researchers discusses 2019-20 literature on the relationship between new construction and rents. The article discusses five papers; four of them found that new housing consistently lowers rents in nearby buildings.For example, Kate Pennington wrote a paper on the … [Read more...]
Are Dollar Stores Wiping Out Grocery Stores?
I had always thought dollar stores were a nice thing to have in an urban neighborhood, but recently they have become controversial. Some cities have tried to limit their growth, based on the theory that "they impede opportunities for grocery stores and other businesses to take root and grow." … [Read more...]
A Desire for Density
Political controversies over building new homes, shops, and offices have long revolved around an axis of "neighborhood vs developer." Depending on your perspective, the "neighborhood" side was either the feisty underdogs looking to maintain the character of the neighborhood they love or the … [Read more...]
The Storper paper: not exactly a bombshell
Some commentators are slightly agog over an academic paper by Andres Rodrieguz-Pose and Michael Storper; Richard Florida writes that they shows that " the effect of [housing] supply has been blown far out of proportion. "Most of this paper isn't really about the effect of housing supply on … [Read more...]