Increasing supply brings down prices. But a builder will not build at a loss or an imminent threat to their rental income from expansion of rent freezes.
A city with an expanding rent-freeze is not inviting new supply.
> Increasing supply brings down prices. But a builder will not build at a loss or an imminent threat to their rental income from expansion of rent freezes.
>
> A city with an expanding rent-freeze is not inviting new supply.
Builders build rent stabilized housing ("affordable apartments") in tandem with market rate unsubsidized units. There is an enormous backlog of development proposals that the city council has been sitting on for a while now. Vacancy rates in NYC are 1.4%. anything under 5% is defined as a critical housing shortage.
New housing is in such extreme demand that people pay $5k/mo for a shoebox.
I think the builder builds if you pay them. I don't think they care about what the rent will be because they just build stuff.
So, just pay them, and figure it out later.
The alternative is what we're currently doing, and have been doing for the past few decades: nothing. This does not work. Our current housing situation is simply not sustainable.
>a builder will not build at a loss or an imminent threat to their rental income from expansion of rent freezes.
A builder isn't a land owner. They make contracts, negotiate a price, and build to that price. They're dealing with a government, so there's more money in the bank to spend if the government is truly focused on solving an issue.
A city with an expanding rent-freeze is not inviting new supply.
>A city with an expanding rent-freeze is not inviting new supply.
Okay, cool. I honestly don't want an atchitect who can't think 5 years on advance (when these rent control proposals are scheduled to end, should they be enacted). That short term quarterly thinking is precisely why we have been unable to build housing.
awesome stuff! loved this comment cause it is the kind of thing US political party (one in particular) teaches its faithful followers that is rooted in some crazy ideology without a shred of any evidence to back it up (especially since here we are talking about NEW YORK CITY not some shithole in the South). Goodspeed mate, wild stuff!!
First - a rent freeze directly transfers inflation costs to the property owners. It is a tax by another name.
Second - there is no similar freeze on property taxes - or the expected inflation in maintenance costs, insurance, and so on. Again - a tax on property owners by another name.
Third - starting with a rent freeze is an indicator of a property owner unfriendly administration. Any builder would have to calculate this into their expected returns on capital investment.
crowbahr|3 months ago
Builders build rent stabilized housing ("affordable apartments") in tandem with market rate unsubsidized units. There is an enormous backlog of development proposals that the city council has been sitting on for a while now. Vacancy rates in NYC are 1.4%. anything under 5% is defined as a critical housing shortage.
New housing is in such extreme demand that people pay $5k/mo for a shoebox.
array_key_first|3 months ago
So, just pay them, and figure it out later.
The alternative is what we're currently doing, and have been doing for the past few decades: nothing. This does not work. Our current housing situation is simply not sustainable.
johnnyanmac|3 months ago
A builder isn't a land owner. They make contracts, negotiate a price, and build to that price. They're dealing with a government, so there's more money in the bank to spend if the government is truly focused on solving an issue.
A city with an expanding rent-freeze is not inviting new supply.
>A city with an expanding rent-freeze is not inviting new supply.
Okay, cool. I honestly don't want an atchitect who can't think 5 years on advance (when these rent control proposals are scheduled to end, should they be enacted). That short term quarterly thinking is precisely why we have been unable to build housing.
bdangubic|3 months ago
ThrowMeAway1618|3 months ago
testfoobar|3 months ago
Second - there is no similar freeze on property taxes - or the expected inflation in maintenance costs, insurance, and so on. Again - a tax on property owners by another name.
Third - starting with a rent freeze is an indicator of a property owner unfriendly administration. Any builder would have to calculate this into their expected returns on capital investment.
tomhow|3 months ago
> You're talking out of your ass
You can't comment like this on Hacker News, no matter what you're replying to.
https://news.ycombinator.com/newsguidelines.html