Reply to We need homes. A lot of homes. Not just affordable, but also middle-income homes.

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Reply to "We need homes. A lot of homes. Not just affordable, but also middle-income homes."

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[quote=Anonymous][quote=Anonymous]If housing prices ever went down, or even stopped going up as quickly, buildings would stop building because it wouldn't be worth it to them. Especially when inflation is driving their input costs up. [/quote]
This is exactly right. These YIMBYs think housing is a commodity like corn. If you only produce enough prices will fall. But it’s not a commodity asset. Even if there was excess supply, if the price is low developers do not need to release it all into effectively a spot market at once. This happens all the time with rental apartments. When rents are down, construction schedules slow down. If a developer is unlucky enough to deliver at a time when rents dropped, they don’t reduce rents but offer incentives. Commercial real estate is the same, just like apartments they would rather retail space sit empty than reduce rents. They are always ready to wait out the market until conditions are more favorable. And many don’t mind making temporary losses to offset other gains for tax purposes. [/quote]

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