Quote:
Originally Posted by Prometheus
But it is the market customer, not the developer, who gets soaked, since it is not the developer who pays for the subsidized housing. The lost income is made up by the remaining market customers in the form of higher market prices (or rents) than those customers would otherwise have had to pay. Hence, mandated subsidized housing equals increasing unaffordability. It is thus the city's so-called "affordable housing" policies that are helping to create unaffordability.
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100% on board with you. The greedy developers comment was just to highlight the premise planners and elected officials use for these sorts of policies. From my experience, their thinking actually is that simple. In a room full of graduate planning students, a developer asked how many had taken any type of economics class at any point in their studies. 2 out of ~50 hands went up. Their economic framework consists of "justice", and the developers are always the bad guys. Concepts like consumer surplus, equilibrium, price mechanisms, are absent from the thought process. The same applies to a couple of Vancouver city Councillors I've spoken with - if you take the discussion in that direction, they respond with hand-waving and return to blathering about developers having to "give back socially", as if only developers and not the actual people being housed benefit from development.
25% subsidized housing with new development is a dystopian and destructive goal - not only in having a large segment of the population living off the backs of others in housing controlled by the state, but in significantly diminishing the land base available to market housing, driving-up its scarcity and contributing to the 'need' for more state housing.