Re:Google ends plans for smart city in Toronto
by asdff on Thursday May 07, 2020 @06:47PM
(#23109271)
What groups of people are moving in and out of Detroit? One explanation could be that people who previously could afford rents in Detroit can no longer do so, and the ones moving in are the ones who can afford these rents and mortgages. A lot of these low income neighborhoods in inner city Detroit have been raised and left to nature over the years, historic supply in the city center has been destroyed and what is left or is currently being constructed might be pricier housing comparatively. The working class greatly outnumbers the capital class everywhere. Take it with a grain of salt as I don't have any data in front of me, I'm merely postulating, but this would explain this trend.
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Re:Google ends plans for smart city in Toronto
by sudosysgen on Thursday May 07, 2020 @09:07PM
(#23110314)
The rate of occupied housing in Detroit has drastically decreased, while average rent has increased. If the supply and demand hypothesis of the real estate market held, one would believe that given the fungibility and non-stratified nature of housing in a given city, cratering occupancy rates would correspond to a decrease in average rent priced. If you believe that housing is indeed stratified and that the surplus of affordable housing has so little an effect on the average price of rent in the entire city, whose average income I should remind you is of under 30 000$ while the average price of rent is of more than 12 000$ a year, then I see no way that building luxury apartments could still mean a sizeable decrease in the price of affordable housing in say, Toronto.