Submitted by Ph886 t3_11nzf2m in providence
realbadaccountant t1_jbqfcbt wrote
The city just lost many millions. Instead of getting tons of property taxes the City gets nothing and the homeowners will have to make up the difference. Oh well. Not like there’s a housing shortage, pension deficit and educational crisis. I’m sure they have plenty of time to wait another 5 years so NIMBYs can prevent housing again.
lightningbolt1987 t1_jbr2pa9 wrote
The city didn’t lose millions. This project was never possible. Now something else can ACTUALLY get built here and the city will get tax revenue.
realbadaccountant t1_jbr32ci wrote
It’s going to take many years and for a much lower tax base increase. If we had land value tax it wouldn’t matter but the building size matters.
meme-scraperr t1_jbticn0 wrote
Yay for the 3 story office building that will get put there, or another park full of crazy homeless people!!
Automatic-Attempt-81 t1_jbqmcyo wrote
Yep. Main reason why the city never grows
lightningbolt1987 t1_jbsl74z wrote
What does this mean? We grew by 10k since the last census.
Automatic-Attempt-81 t1_jbspgyn wrote
I don’t see that anywhere on the government census website. I see a decrease in population from 2020-2021 (not unusual with COVID).
There is really no argument to be had against the thought that this city is a bit resistant to development.
relbatnrut t1_jbui0t7 wrote
https://www.census.gov/quickfacts/providencecityrhodeisland
Population, Census, April 1, 2020 190,934
Population, Census, April 1, 2010 178,042
Not sure why this is upvoted. The 2021 number is only an estimate and also is only a decrease of about 700 people from 2020.
The city has also grown every census since 1990, when it had a population of 160,728.
Automatic-Attempt-81 t1_jbuldlz wrote
As it should, I don’t disagree. I think it has potential to grow more than 1% each year lol
NickRick t1_jbqoofo wrote
Does the city need more luxury apartments? I thought there were plenty of unsold units. They put some up at station row like 15 years ago and it's full pretty empty and was used for dorms for a while.
jakejanobs t1_jbsxt19 wrote
When there is a shortage, everything for sale is “luxury”. When chickens died from bird flu, eggs became a luxury good. Things get cheaper when you make more of them. Thing get more expensive when production is blocked, whether it’s by a bird flu or angry NIMBY’s.
realbadaccountant t1_jbqp8t9 wrote
So do you honestly believe housing stays empty forever if they’re considered “luxury” and nobody can pay that price? Or do they eventually reduce the price to whatever the market will allow, get filled, the new occupants old houses become vacant, and so on. Because that is how economics works my friend.
NickRick t1_jbqq008 wrote
Hasn't worked in the last 15 years, but sure man let's build a bunch more and I'm sure they will drop the prices annnnny minute now.
MahBoy t1_jbrcuvi wrote
The median income in Providence is less than 30K/yr.
Yes, they do stay empty.
Things like this are not built because units get filled. They get built so they are hard assets on somebody's books. They get built because they're expensive tax write-offs that can be used as a 30-year asset class. They get built due to real estate speculation. None of those reasons provide any real benefit to anybody except the developers and the construction unions.
Considering that public land is being used here, there should be measurable public benefit for any development that occurs on it.
meme-scraperr t1_jbtijg3 wrote
The public benefit is that the rich kids who are buying up all the housing downtown and in fox Point can live there and open up housing for poor people it’s not hard to understand
relbatnrut t1_jbuipei wrote
And then more rich people from Boston and New York are attracted to a perfect little gentrified city and more luxury housing is built and rents are still sky high but it's okay because the filtering effect will probably kick in sometime around 2045 and housing will finally be affordable.
MahBoy t1_jbubhak wrote
Right, because the rents they were paying elsewhere are magically going to go down because they found somewhere else to live /s
meme-scraperr t1_jbubu9s wrote
Your understanding of basic economic principles is laughably bad, but actually not so funny because I share the same city with you
MahBoy t1_jbue9i0 wrote
[deleted]
lightningbolt1987 t1_jbsl5pc wrote
This just isn’t true. Developers do not want empty buildings and risk default if they are empty. You’re talking about luxury condos bought by rich investors. What you’re talking about doesn’t apply to apartment buildings.
realbadaccountant t1_jbsp3mn wrote
This person doesn’t understand basic economics, nevermind accounting tricks. My god. So ignorant.
MahBoy t1_jbt0fhl wrote
K
relbatnrut t1_jbqtf8l wrote
In practice what this has done is shift the demographics of Providence, attracting rich people from Boston and New York who can afford higher prices. It's not that no one can pay these prices (see: Providence's population growing even as housing prices rise exponentially). It's that the people who can pay those prices aren't the same people in Providence who need housing.
realbadaccountant t1_jbspyoy wrote
Not how housing prices work. The market is whatever people can pay, not what developers want to charge. That’s basic economics.
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