Here they are, in order of inaccessibility and unaffordability to the middle class.
1. New York (Sprawls)
2. London (Doesn't)
3. Los Angeles (Sprawls)
4. Paris (Doesn't)
5. Tokyo (Doesn't)
6. Mexico City (Doesn't)
7. Seoul (Doesn't)
8. Osaka (Doesn't)
San Francisco sprawls and matches the high end of the list. Not much evidence for the op's thesis.
Build a bunch of three story condos out on some cheap land and you don't even need an elevator or parking garages because there's room for covered outdoor parking.
Build a high rise and you have all sorts of cost with putting something 20 stories high. Just the materials cost more. It also takes longer to break ground and build.
A good example is when someone in a rural area is outraged when the cable company says it'll cost a couple grand to wire up their house that's a ways off from any main road. Like, did you think that stuff was just free?
That's the textbook case of privatizing the profits and socializing the losses. The infrastructure you're talking about will be built by the city/state and the costs borne by everyone who lives up to the point of that condo 20 miles out.
When things are not subsidized, the developers only end up building luxury condos in urban areas, which is the case for most large metro areas right now.
Yes, agreed. And I'm not completely against socialization, but I see little reason to encourage it for this case. If infrastructure and services cost more further out, property taxes for those areas should reflect that.
> When things are not subsidized, the developers only end up building luxury condos in urban areas, which is the case for most large metro areas right now.
This tends to be true because SFH-zoned areas are held as sacred cows, and what increased density is allowed is constrained into small areas. This both keeps land prices high, so developers need to target the high end of the market, and it means that cheaper forms of increased density (say, building duplexes/triplexes/granny flats in existing low-density areas) are literally illegal.
I swear, people want developers to build huge towers and then offer up the units for cheap. Do you think it's cheap to build those towers? Hint: it is not. Brand new, inherently-expensive-to-build housing is always going to be expensive to rent. The solution is to a) permit cheaper forms of housing where possible, b) allowed increased density across a wide swathe of residential area (which can be done the same way as (a), really), and c) accept that new things always cost more than old things. The luxury units of today are the upper-middle class units of twenty years from now, the middle-class units of forty years from now, the working-units of sixty years from now, etc.
Because more people want to live there. The solution to high prices is to build more of the type of housing that people want to live in; not to build more of the type of housing that is already in low demand.
I'll pass, thank you.
Three story condo closer into town? With no parking? Sure! I'll give up my car even.
If, that is, you can get permission to build such a thing somewhere. THAT is the problem.
Suburban sprawl, meanwhile, remains actively subsidized.
So if your high rise builders are hobbled, OF COURSE more sprawl will be the only way to address increasing demand.