Re:New Taxes and Higher Density Aren't Fixing Vancouver's Ho...
by CryptoPunk on Thursday May 09, 2019 @01:40AM
(#19865689)
>>The goal is to build housing that is actually used as housing as opposed to a vehicle for speculation.
You're completely ignoring Econ 101.
Housing that is used as housing and housing that is a vehicle for speculation are not mutually exclusive. Rental properties produce rental income and appreciation for their owners. More people looking to make money from real estate investments results in more capital investment going into expanding housing stock, and thus more rental supply, which drives down rental rates.
The places which suffer the most from lack of affordable housing tend to be those that put in place the most impediments to profit-motivated investment. In other words, they ignore basic economics.
You're completely ignoring Econ 101.
Housing that is used as housing and housing that is a vehicle for speculation are not mutually exclusive. Rental properties produce rental income and appreciation for their owners. More people looking to make money from real estate investments results in more capital investment going into expanding housing stock, and thus more rental supply, which drives down rental rates.
The places which suffer the most from lack of affordable housing tend to be those that put in place the most impediments to profit-motivated investment. In other words, they ignore basic economics.