Reply to Is there a coherent argument that loosening zoning laws will lead to affordable housing in DC?

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Reply to "Is there a coherent argument that loosening zoning laws will lead to affordable housing in DC? "

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[quote=Anonymous]
[quote]Why wouldn’t there be a 1-1 change? For every new luxury unit, doesn’t someone vacate a less expensive unit down market? Not exactly. There are many reasons why the submarket units are imperfect substitutes. For one thing, as prices fall, households in the luxury segment of the market may consume more housing. This can happen when someone buys a second home or even when two roommates respond to lower prices by each renting their own place.[/quote]

Oh my God. You think people living together as roommates involuntarily is a good thing? They should have to do that so you can keep your precious SFH only zoning?

[quote] But also, some luxury units may be taken off the market when prices fall, [/quote]

Unlikely.

[quote]while others may be downgraded to lower-quality buildings because the lower rents may no longer be enough to support luxury amenities and services. [/quote]

And thus become affordable - the units filter down.

[quote]I think it is clear from this that we can’t expect new luxury development to have the same impact on rents at the bottom of the market as it does at the top. But how much less impact is not clear. In technical terms, there is no good recent data on the cross-price elasticity of demand between luxury housing and lower-cost housing. A large group of urbanists have taken to talking about the housing market as if these elasticities were close to 1 (increases in luxury supply have a big impact on the low-end rent). But it’s just as likely that the elasticity is closer to 0 (the rent at the bottom of the market is very insensitive to the level of supply at the top of the market)."  [/quote]

Much more likely is that its somewhere in the middle.  So adding more units at the top A.  Helps SOMEWHAT with units further down - at least a little with units at the bottom, much more with units in the middle. B.  Means more people living close to jobs and transit, with benefits for the region and the planet.  C. Incorporate IZ units which more directly impact lower rent tiers  D.  Provide tax revenues that help fund other affordable housing, as well as services. E. Directly benefit the people who move into them, whose well being is of just as much merit as someone who just does not want multifamily in the neighborhood.[/quote]

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