Re:‘I don’t want to become San Francisco’: Urban woes spur s...
by adam_arthur on Tuesday June 27, 2023 @07:09PM
(#36499970)
The irony is that increasing population density leads to much greater wealth gains for property owners than stifling development.
When neighborhoods get upzoned for higher density, the value of the land rises far beyond what a SFH would command. e.g. now can build an apartment complex on what used to be a SFH. How much would a developer pay for a regularly sized SFH plot in the middle of Manhattan if it were zoned for high rise development?
The reason Bay Area real estate appreciated so much was primarily due to the concentration of high paying jobs, not the lack of building. But now the lack of building is likely to lead to other areas/remote work displacing the centralization of jobs.
When neighborhoods get upzoned for higher density, the value of the land rises far beyond what a SFH would command. e.g. now can build an apartment complex on what used to be a SFH. How much would a developer pay for a regularly sized SFH plot in the middle of Manhattan if it were zoned for high rise development?
The reason Bay Area real estate appreciated so much was primarily due to the concentration of high paying jobs, not the lack of building. But now the lack of building is likely to lead to other areas/remote work displacing the centralization of jobs.