shnu t1_jd9f9k4 wrote on March 22, 2023 at 7:51 PM

Reply to comment by _xXmyusernameXx_ in Toll Brothers and Harris Realty Announce Joint Venture to Develop 393-Unit Luxury Rental Community in Norwalk by jr_reddit

The thing about increasing supply is that it puts downward pressure on prices.

If this is unaffordable to you, it'll make another, older apartment more affordable. That's how this works.

jgjgleason t1_jdbd58t wrote on March 23, 2023 at 4:15 AM

Seriously I don’t get how we’re still having to explain this to people. If there are no “luxury” homes available then the people with money will go rent the cheaper shit. They’re willing to pay more so suddenly Middle shit ain’t so middle. As a country, we have aggressively under built housing for decades.

SirKnightRyan t1_jdblys2 wrote on March 23, 2023 at 5:53 AM

Supply demand curve only works for like goods. A $1200 apartment vs a $2200 luxury unit isn’t the same product and if there isn’t demand for the high end it won’t easily affect pricing on the low end. There’s also the issue of tax credits, these apartments get millions of dollars of credits, paid for by property owners (and their tenants), so it isn’t a clear win, it totally depends on the specifics of the town and the development.

shnu t1_jdcj9xd wrote on March 23, 2023 at 12:50 PM

If there are no luxury units available, the non-luxury units’ rents will rise to what the market can bear.

This is incredibly basic stuff and I can’t believe we’re still debating this. Housing starts have lagged population growth for twenty years. Of course housing is expensive.