The argument that increased supply of urban housing will lower prices is rapidly being disproved by successive waves of gentrification throughout American cities. Stephen Smith offers a considered analysis of the economics behind this dynamic.
For the original, and often poor residents of newly gentrifying neighborhoods, the market remedy of increasingly supply doesn't make anything cheaper. Rather, they find themselves pushed out by the increased cost of housing, and amenities.
Smith believes that price increases respond to new amenities along an S-curve. "The first 100-unit rental building with the neighborhood's first high-quality grocery story is a huge boon, but the hundredth glass tower with the neighborhood's fifth bank won't even be noticed. It's at this point that the price-lowering effect of dumping new units on the market will outweigh the price-raising effect of the new amenities – in other words, prices will start to fall."
The problem is that once a neighborhood has all its amenities, new housing construction is ground to a halt by a NIMBY shield and any remaining original homeowners who are unlikely to allow their home values to fall.
FULL STORY: Does Urban Growth Have To Mean Gentrification

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

Amtrak Cutting Jobs, Funding to High-Speed Rail
The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

Ohio Forces Data Centers to Prepay for Power
Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

MARTA CEO Steps Down Amid Citizenship Concerns
MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant
A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Caltrans
City of Fort Worth
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie