top of page
Search

The Unsaid Truth About Housing Supply In America's Main Cities

Writer's picture: Jasmine NazariJasmine Nazari


It's no secret that big cities are more popular than ever, while housing continues to be scarce; both tenants and property owners residing in these cities vote for their own short-term benefit, no new housing, same city planners. In both cases, in the short run, both are benefited by the limiting of housing. Why? Residents don't want their neighborhoods flooded with new tenant profiles, and they fear gentrification and the rising of rent costs. Property owners don't want a higher supply of housing to come in and correct the issue, negatively impacting values and raising quality standards since they're newer builds.


The elephant in the room is that we're only talking about existing apartments here... We're not even approaching houses, multi-family units, townhomes, etc. because folks these days can't afford buying anything other than condos. On the ownership side, the costs of building a single family home (impact fees, permit fees, for what by the way?) capture the opportunity cost of that same asset which could have been turned into several units to capitalize on.


In societies where people live homogeneously, think Denmark or Japan, there is a strong community allegiance that replaces core gaps and allows for everyone to live comfortably trusting in their stability longterm. However, in countries like the U.S. where everyone's trying to win their own race, we end up taking from ourselves in the long run by staying in the tunnel vision of individual success in the short run.


I hope this helps make sense of your city when you're driving around and seeing the crazy asking prices on properties... I'm happy to speak more on this topic at request!


As ever,

Jasmine

66 views0 comments

Recent Posts

See All

Comments


bottom of page