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[quote=Anonymous][quote=Anonymous]The affordable housing advocates arguments seem to begin and end with saying that increasing supply will reduce prices.

What I don't understand is that the more single-family homes you tear down, in order to replace them with luxury condos, the more valuable single-family homes become.

Which means their price goes through the roof. Which means it no longer becomes economical for developers to buy single-family homes so they can replace them with luxury condos. Which means this whole process of trying to increase density stops. And the relax-the-zoning laws crowd is never able to get the massive number of new units built that they'd need to put in a dent in prices.

Also, if you own a single-family home and you're thinking of selling, and a developer comes sniffing around, you should triple your asking price. Why should developers make all the money?

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First: no, it begins there, but it doesn't end there.

Second: there are lots of places that people can build multi-family housing that don't involve buying and knocking down single-family housing.

Third: if you own single-family housing and you triple your asking price, the builder will likely look elsewhere.

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