> they have less incentive to build enough homes to actually drive down prices via market forces because it means less profit for them
If a developer can replace a $5mm house with a 30-unit tower of $500,000 apartments, that's good business. Of course, if you put ten years of planning commissions and environmental reviews in between, the cost might need to be $1mm. And if the neighborhood blocks the building because it changes the character of the neighborhood, the entry cost will remain $5mm.
If a developer can replace a $5mm house with a 30-unit tower of $500,000 apartments, that's good business. Of course, if you put ten years of planning commissions and environmental reviews in between, the cost might need to be $1mm. And if the neighborhood blocks the building because it changes the character of the neighborhood, the entry cost will remain $5mm.