2/2 with “if rent would drop anyway why would they get in the market” and it has to do with the fact that rationally or not they tend to view long term imposed caps as more scary than competition they can beat to market, as each one vies to build. It’s a collective action thing in a good way
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If rents do fall, say by 3% for 2 years in a row, do you think there will still be new housing starts?
The narrative you're telling is just completely incompatible with the argument that building restrictions have shifted the whole supply curve
I think it takes both supply and careful rent regulation to fully tackle the problem
Still, given how expensive Austin is, it seems pretty clear that it will take government planning to make housing affordable.
But again yeah, cap with a buffet over inflation and a 20+ year exemption? Thats fine
But still now you're just saying that it's the banks who are irrational, not the developers
That said there are a lot of YIMBYs like m who think it can work depending on details