Externalities, + or -, Ignored or Unknown

In residential development, there are stakeholder actors:

Existing residents, owners§ Many of their goals and interests are to limit the amount of additional residents and to increase the price of their own housing. Both of those goals have been achieved to some extent. The Bay Area has the highest housing prices in the nation. The internal domestic migration from the Bay Area to other states and regions has been greater than the natural growth rate (births – deaths), since 2000, based upon Census data. There has been population growth due to immigrants. That high housing cost has increased some workers’ pay (albeit less than housing) and thus the cost of goods and services, including government. Higher housing cost also increases the cost to move to another Bay location, due to higher property tax costs (Prop 13). Also if a homeowner wants a house of higher value, it has now become proportionally more expensive.  Read more of this post

Price increases (Housing)

An out-ward or right-ward shift in supply redu...

Demand seen as driver. Supply is trivialized, but important.

The national housing price is partially due to interest rates and the speculation, which increased the buying frenzy frequency. Another main culprit is the more widespread anti-growth/inward-growth emphasis, due to the HDC (high-density coalition) frame of reference. That has not been fully established yet by the “experts,” but it will be in a few years. Further study will show how the restriction of housing supplies has had a lot to do with causing the rapid housing price increase over the last few years. The market is in an adjustment period now, and may take years to be corrected. People were foolish to buy such highly price property. The rental market has not risen nearly as much. For new ownership, renting is a much better deal, even accounting for the equity. That should have been considered without even the inclusion of a potential drop. Of course, much of the equity is meaningless now or non-existent. It used to be that rent would be more than a mortgage, for the same property. That has been reversed for years now, in many markets. That should have been an indication not to buy. Read more of this post

UGBs (Urban growth boundaries): Against Nature and Humanity

Illustrates a rightward shift in the demand curve.

Simple S&D econ, but avoided

Growth management is practiced by many cities, for many reasons. The benefits are illusory, and for the few that materialize, are for the existing residents. There are many negative outcomes. What influence, on other factors, does limiting growth, in the attempt to increase density? That lowers the vacancy rate, which pushes up prices, due to fewer choices and less competition.   Read more of this post