Developers Aren’t Going to Solve the Housing Crisis in San Francisco

by DYAN RUIZ and JOSEPH SMOOKE
from [people. power. media]

[people. power. media] is an independent media channel focused on the perspectives of grassroots organizations and marginalized communities broadcasting on the internet and through social networking. This essay was published by two authors with San Francisco roots who have tired of the so-called conventional wisdom referenced in the following four myths.

Myth 1:
Housing is expensive because there isn’t enough supply.
Fact:
Housing is expensive because so many techies and investors want to rent and buy in San Francisco. Prices are mostly determined by high-end demand.

Myth 2:
Developers are building high-end housing because it’s expensive to build housing in San Francisco.
Fact:
Even if building costs are lower, developers will build expensive housing, as long as there’s enough demand for it.

Myth 3:
Let developers build taller buildings. Then prices will go down.
Fact:
Upzoning won’t solve the housing problem for many reasons.

Myth 4:
As long as you can upzone and deregulate, you can build and build to the point where prices will go down.
Fact:
That’s not the way that housing development works. Housing finance has limits.

Solutions:
Rethinking private and public sectors roles in a new economy

Read the full article at [people. power. media]

 

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Filed under economics, housing, planning

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