The types of people the parent is describing don't buy real estate as an investment. They buy it as an asset. And for most Americans, their house is their most valuable asset.
So can you not spare a shred of sympathy that they are hyper-conscious about what happens to the value of that asset?
Of course I can. My sympathy goes both ways.
>> (Also, building housing doesn’t just tank the value of your home, trust me.)
I'm not talking about simply increasing the supply of housing. The specific example we are discussing is a new skyscraper blocking the view from an existing one.
I also think it's really easy to say "sorry, you fucked up when you spent all your money on a house" if it's someone else. These aren't all "Boomers who got lucky" - they are also millennials buying their houses today at current rates.
I think we have to have more empathy for these people if we want to make progress.
Remember, this all rests on the assumption that building housing necessarily depresses property values, and that isn’t a guarantee. You can tell because it goes further than that. It’s hard to build any housing at all. My city had about 100,000 people in it. I know some smart urban planners and they estimate it would take about 20,000 to 30,000 new units to stabilize our rental market. Not drive prices down, just stabilize. But we can’t even build ONE apartment building, let alone tens of thousands of units. Even if more housing would drive property values down (which it doesn’t necessarily), it would take so much housing before it ever got to that point.
And once again, we can have empathy and we can build housing. I promise one or two apartment buildings isn’t going to ruin grandma and grandpa’s home value. I promise.
Also, I don’t think people’s home values drop all that dramatically when new housing is built. We’ve been putting this off for decades, but we’ve also been artificially inflating housing prices. Maybe your tiny bungalow ISN’T actually worth $500,000. Maybe decades of bad local policy have ballooned the price of your house at the expense of others.
And even so, even if building housing makes your house decrease in value, that’s still not a good reason to prevent development. I care much more they cities are healthy and plentiful housing than I do about some Boomers who got lucky with when they bought into the real estate market.
The solution is actually remarkably simple: build more housing. We did it before; plenty of other countries with more sensible zoning laws do it. There aren’t enough places for people to live. We can either start killing people, or we can put up some walls. Personally, I’m a fan of buildings.
Edit: typos (phone)