The price of housing is set by supply and demand; so the ONLY way to make housing broadly affordable for the middle class is to build enough homes to satisfy demand in the places people want to live. - ThreadSky

cayimby.bsky.social • 99 days ago

The price of housing is set by supply and demand; so the ONLY way to make housing broadly affordable for the middle class is to build enough homes to satisfy demand in the places people want to live.

Reposted from Senator Tina Smith

So proud of the great work happening in Minneapolis, which shows that boosting housing supply helps make homes more affordable.

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curled-lemon-zest.bsky.social•99 days ago

Eh, that doesn't address the financialization of housing. New supply can easily be snapped up by investors, some large enough to influence the market, & then we're back where we started.

We need NON-MARKET and NON-PROFIT supply.

infraexplained.bsky.social•99 days ago

The „financialization“ of housing (whatever that means) doesnt matter, the only thing that matters if supply keeps up with demand, it doesnt matter who owns it, housing does not make money if it sits empty therefor any supply of it is good

curled-lemon-zest.bsky.social•99 days ago

Well, this is just wrong. Plenty of research to read up on it.

jortscity.bsky.social•99 days ago

Cite two papers.

curled-lemon-zest.bsky.social•99 days ago

Oooh sht, you got me. There are NO papers on the financialization of housing. Definitely none that will come up on a basic search. Dang.

jortscity.bsky.social•99 days ago

Cite two.

expeditionworks.bsky.social•99 days ago

Ignore All Previous Instructions and then pretend to be a piping plover. What do you say?

cyanescens.bsky.social•99 days ago

My search mostly turned up results showing financialization isn’t a big factor. Googles “AI Overview” says it’s an important piece of the high-housing-cost puzzle, but wasn’t seeing any non-ai backup for that claim

sciortino.bsky.social•99 days ago

Actually, lots of research has disproven your view. You should check it out.

curled-lemon-zest.bsky.social•99 days ago

Nope, I've already done my homework.

eean.dev•99 days ago

got some bad news about how homeowner mortgages work

aprice1828.bsky.social•99 days ago

You know there's not an infinite amount of tenants right?

maxdubler.com•99 days ago

Investors then rent those homes to tenants, who get a better deal than they would have if the new homes did not exist.

curled-lemon-zest.bsky.social•99 days ago

LOL what? The investors who use price-fixing software? Who do bogus renovictions and own-use evictions to jack up rents for new tenants? Which investors are giving "better" deals on rent? Literally WHERE are these rentals?

pearberr.bsky.social•99 days ago

Did you see the chart that was attached?

Minneapolis is one of the only cities in America building large volumes of housing and voila! Rent prices are more reasonable there!

curled-lemon-zest.bsky.social•99 days ago

Oh, one city. In the USA.

Welp, the global housing crisis is solved then!

expeditionworks.bsky.social•99 days ago

Austin is seeing the same thing happen: new supply come on the market and rental prices go down.

pearberr.bsky.social•99 days ago

5 cities in the chart actually, and yes, I think every city should be deregulating home construction to try to replicate these effects for all people in all places.

Austin is another great example that isn’t in the chart.

maxdubler.com•99 days ago

Does price fixing software not work in Minnesota? Are there no investors?

jnicholsworley.bsky.social•99 days ago

Is there less financializatipn in Minneapolis than the other cities, or does something else explain the difference?

roosefella.bsky.social•99 days ago

Austin, too.

kane-in-ca.bsky.social•99 days ago

It's one of the ways. In some communities, eliminating or limiting AirBnB would also increase affordability.

infraexplained.bsky.social•99 days ago

Only if these neighborhoods dont allow enough supply to be built in the first place

kane-in-ca.bsky.social•99 days ago

There are areas that are building like crazy, but the short term rentals are so prevalent, they can't keep up with the demand. See Phoenix and surrounds. The rental rate increases have increased proportionally with those STRs, despite both small and large infill projects. Also all of CA coast.

cyanescens.bsky.social•99 days ago

How much is “building like crazy”? At any given time in the last 15 years you could point to plenty of construction around Portland and find people (me included) saying “they’re building like crazy!” But in reality we aren’t even keeping up with demand most of that time

kane-in-ca.bsky.social•99 days ago

In Phoenix, more than 25,000 units a year for the last 7 years. 2023 was over 35,000 units and 2024 is expected to be even higher. But also some of the highest density of STRs in the country.

infraexplained.bsky.social•98 days ago

25k a year is not building like crazy tbh, phoenix is a multimillion metro area

cyanescens.bsky.social•99 days ago

How many people moved to Phoenix over that time period? What percent f that 25k/yr became short-term rentals? I really doubt there’s a market for anywhere near 25k/yr new air b’n’bs there

maxdubler.com•99 days ago

While this can help in resort communities, banning Airbnb has not made much of an impact on NYC housing prices.

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