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A bad week for the Yimby narrative

August 9, 2018

By Tim Redmond : 48hills – excerpt

New studies show that building more market-rate housing for rich people doesn’t bring down rents for everyone else. It is not a good week for the Yimby argument.

In a series of reports, studies, and articles, the claim that building more housing for rich people will bring down prices as been challenged, if not debunked. The new evidence suggests that the only falling rents are at the very top of the scale – for the rest of us, that new housing is not bringing any relief at all….

From The Washington Post:

“Nationally, the pace of rent increases is beginning to slow down, with the average rent in at least six cities falling since last summer, according to Zillow data.

But the decline is being driven primarily by decreasing prices for high-end rentals. People in low-end housing, the apartments and other units that house working-class residents, are still paying more than ever.”... (more)

If you assume more supply means lower prices, you ignore the fact that supply is driven not by demand but by the availability of investment capital, which is now entirely international and speculative.

 

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