In the ongoing and contentious debate about whether market-rate development is a cure or a disease, another writer comes down on the side of more supply, no matter the cost.
Noah Smith takes a position in the debates surrounding supply and demand in the housing market of desirable urban areas. His position: the cure for costly housing is more costly housing.
Acknowledging that the standard argument of supply vs. demand is complicated by the concept of induced demand, Smith still endeavors to defeat the chosen belief of "progressives." As he describes it: that market-rate housing raises rents and that only government can set an affordable price for housing.
Faced with two competing theories -- the basic Econ 101 theory of supply and demand versus the theory of induced demand -- we have to turn to the evidence. It’s well known [pdf] that urban land has been getting more expensive, but how would denser development change the picture?
Smith calls on studies by Lawrence Katz and Kenneth Rosen from 1987 and Edward Glaeser, Joseph Gyourko, and Raven Saks from 2005 to bolster the pro-supply and demand argument. Smith also calls on more recent research by Eric Fischer, who collected more than 30 years of data on San Francisco rents for a recent study. "He modeled them as a function of supply -- based on the number of available housing units -- and demand, measured by total employment and average wages," explains Smith. "His model fit the historical curve quite nicely."
FULL STORY: The Cure for Costly Housing Is More Costly Housing
Left-NIMBYism and COVID-19
The events of the past year shows that the law of supply and demand applies to urban housing, and that gentrification can, in fact, be subdued.
Is Anti-Growth the Wrong Approach to Fighting Gentrification?
Limiting development has been a powerful tool for anti-gentrification activists, but have these policies had counter-productive effects?
Lack of Multi-Family Zones Contributes to Nashville’s High Housing Costs, Study Says
Nashville and surrounding communities allow for a relatively small amount of multi-family housing, according to a new zoning atlas of Middle Tennessee. A regionally focused nonprofit is using the atlas to push for zoning reforms.
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