An interesting point was made to me yesterday about housing costs. Median home price is often the number used as an indicator of affordability - but it has nothing to do with affordability. If you have ten units available for $500/mo each, and then you build another ten units for $3000/mo each, your average just went up to $1750 - but those ten units are still there. The buy-in cost to the neighborhood doesnt scale up that way; average or median housing costs will always increase in an urban center - any new construction will see to that. All you can do is displace as little as possible while ensuring enough is built; to do that, you should let the market go upward.
Posted on: Fri, 04 Jul 2014 23:05:58 +0000
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