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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I suppose our personal finance math may differ, but two married people making a combined 140 a yr or so, I wouldnt feel comfortable with a 700k house.    (thats on the low end by the way, the ones in Arlington ended up over 1M).   But lets assume 700k here.   You would need 140 for a down payment for an 80/20 mortgage.

Then you factor in property taxes, insurance, etc etc... no effing way two teachers or two nurses are swinging that.

Again-its a fairy tale story "we want affordable houses for teachers and nurses and cops!!"   (then they build 700-1M triplexes, that none of those people will actually buy or be able to afford).

Just admit that. [/quote]

New construction is always going to demand a premium. The issue isn't so much what the new units will cost, but what effect they will have on other units compared to maintaining the status quo.

Scarcity drives prices. More people competing for the same number of homes is going to keep driving prices up faster than incomes.[/quote]

I would be inclined to agree somewhat with this theory (full on admitting by the way that the new constuction isnt actually for the famed "teachers, firefighters, cops, nurses" trope mind you), but the wealthier will buy them and free up some of the older, cheaper, inventory... EXCEPT.... no one is leaving a 2.5-3.5% mortgage for a 6.5.   It's jsut not happening.

So the new builds will need to be price attainable for the actual middle class you are claiming to help. [/quote]

There is a bottleneck of people at or above 120 percent AMI who are looking to buy. They will absorb any new homes for purchase, which is great for them, but they’re not the people Friedson said the bill was for.

It’s also more likely that the new units will be rentals, not units for purchase, and that construction of these units will substitute for construction of other rentals because the inclusionary zoning requirements in the ZTA are outrageously favorable to developers. Remember that developers produce units to meet demand. They try not to create surpluses and are more than happy to have shortages. [/quote]

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