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.
Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?
Portland Raises Parking Fees to Pay for Street Maintenance
The city is struggling to bridge a massive budget gap at the Bureau of Transportation, which largely depleted its reserves during the Civd-19 pandemic.
Spokane Mayor Introduces Housing Reforms Package
Mayor Lisa Brown’s proposals include deferring or waiving some development fees to encourage more affordable housing development.
Houston Mayor Kills Another Bike Lane
The mayor rejected a proposed bike lane in the Montrose district in keeping with his pledge to maintain car lanes.
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.
Gallatin County Department of Planning & Community Development
Heyer Gruel & Associates PA
JM Goldson LLC
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
Jefferson Parish Government
Camden Redevelopment Agency
City of Claremont