Cool_Story_Bra t1_j0hkcge wrote on December 16, 2022 at 6:14 PM

Reply to comment by jindc in DC's old Vanguard building to be converted into downtown apartments by Maxcactus

Those could all make condos more affordable, sure. I fail to see how any of that would encourage anyone to build more condos. That’s the factor that’s missing here. Those efforts don’t do anyone any good if there aren’t more condos to buy.

And I guess you could making zoning specific to condos vs apartments, but I don’t think adding more restrictions to zoning is a way to spur continued development of new housing, which is the key to lowering prices for all types.

jindc t1_j0hmid1 wrote on December 16, 2022 at 6:28 PM

That is a demand function, is it not?

If condos are more affordable to residents, then people will want them.

For that matter, if DC implemented any or all of those mechanisms for commercial properties on K Street - including expanding zoning for multi-family, but restricting it to condo or coop residential property, don't think developers would fill the space and make a profit?

Without a grand economic study, I think it would be enough.

Cool_Story_Bra t1_j0ho3um wrote on December 16, 2022 at 6:38 PM

It’s not really a demand function, as there is already massive demand in DC for everything. Given a scarcity of housing, where you can fill up anything you build, it’s driven by margins for profit optimization. Profit for developers here means maximizing the price of condos or rents. Making condos more affordable via tax incentives and whatnot doesn’t actually change anything for the developers unless it means they can raise prices to increase profit. So now you’re cutting tax revenue to boost developer profits by roughly the same amount, and cost of condo units has gone up.

And you certainly could require condo or coops to be built, but I’m not convinced that’s what people want. There might be data saying it is, but Im not seeing it. Certainly not enough for the city zoning boards to pick and choose where they implement those requirements.

Best solution is to build build build as much as possible. Supply goes up and meets demand, prices come down (or at least level off) and condo vs apartment economics can reach a more natural equilibrium.