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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]So many NIMBYs here concerned about "affordable" housing, yet not a single one is talking about raising taxes to pay for these subsidized units. Because yes, they need taxes to subsidize them, because nothing is free.

It's almost as if "affordable" is a fake argument, used to stop any housing construction.

Hmmmm, but why would people be so disingenuous? Hmmmm.[/quote]

We’ve spent all our subsidy money on market rate housing and on bailing out land speculators, at Friedson’s urging, so unfortunately we don’t have the money to subsidize enough affordable housing. Maybe your heroes the developers will take lower profits. [/quote]

Please look up the typical profit margin of these "evil developers" and get back to me.

Oh, wait, you won't, because they are in line with most industries because they are not monopolies and there is abundant competition in the space.

Please tell me how much "profit" a homeowner in their 60s is sitting on due to land appreciation? Millions. And you think "developers" are the enemy.  :roll:  :roll:  :roll:  :roll:  :roll:  :roll:  :roll:  :roll:  :roll: [/quote]

Equity Residential: 63.2 percent gross margin
Avalon Bay: 63.8 percent gross margin
American Assets Trust: 63.4 percent gross margin

Amazon: 50.55 percent gross margin
Apple: 46.33 percent gross margin
Safeway: 27.4 percent gross margin 
Kroger: 23 percent gross margin

See how the other companies providing essential goods have lower margins (by more than half?)

Very few homeowners are sitting on millions of dollars of appreciation in land value alone. When you annualize their appreciation, it’s generally in single digits, just a fraction of the profits that developers are making every year.

Want to keep playing? [/quote]

So much wrong in so little time. Econ lesson time!

You understand profit margins are a signal, right? A signal that demand for something far outstrips supply. Perhaps, maybe, more of that thing would reduce demand and future profits? Just like any other industry?

The idea that "huge mean profits for evil jerk company" is some reason to *not* make what they are doing easier for others to do (building housing) is completely backwards. Hint: part of the reason why they make money is because what they are doing is hard, because of zoning and NIMBYs like you.

Econ lesson over.[/quote]

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