Re:The Rise of the Forever Renter Class
by throwaway11460 on Tuesday May 07, 2024 @11:13AM
(#40286636)
Where I live there would be 100 people waiting to buy an apartment you just built, giving you absurd amounts of money for it. There is no reason to build less than the absolute maximum possible. There are many developers and builders who want to do it, could do it and eventually will do it - but getting an approval takes 11 years.
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The timeline is a killer, because 11 years (and more) from beginning to end means you could end up with your new building opening just as the area goes into a slump.
When the turnaround time is shorter, the builder is taking much less risk, and so they're more willing to build. (They can still overextend as happened during the last housing bubble, mind you.)