Thread

1. soonnow · 1789971698 · focus · HN ↗

   To add a b it of context. They do not want to confiscate housing. They do want to pay landlords, though below current (very high) rates. Also this would only apply to private real-estate companies not individual owners.

   And they can't govern alone, so I think it's unlikely that this plan is actually implemented as originally planned. The likely coalition would contain 3 parties.

   1. aurareturn · 1789974034 · focus · HN ↗

        They do want to pay landlords, though below current (very high) rates.
      

      In San Francisco, NIMBYs secretly support laws like this. This basically guarantees that many builders will do the math and conclude that it doesn't make sense to build housing in San Francisco.

      New large condo buildings have to sell 30% of the units at below market rate. This causes many viable projects to never get built.

      So laws like this are sold to renter voters as a way to lower housing costs, but NIMBYs secretly love it. Over time, renters pay more in rent because there is less supply due to builders not building. However, a lucky few renters who were here early will get below market rents.

      Perfect examples of voters voting for a short term fix but pay more in long term. And voting for themselves while screwing future renters.

      1. vrganj · 1789974268 · focus · HN ↗

         The fix is for the city to be the builder, like it is in Vienna.

         The City of Vienna is the largest landlord in Europe. It is also the only major European capital without a rent cost crisis.

         1. MrMember · 1789986346 · focus · HN ↗

            The fix is to let the companies who want to build, build. For some reason a lot of cities won't support new construction if a private company might make a profit on it.

            1. blahblaher · 1789986648 · focus · HN ↗

               Most private construction is dedicated to luxury condos because that's where the big money is. If you let the "market" decide on its own it will always decide on the most profitable items, even if that's not what is needed.

               1. bluecalm · 1789994439 · focus · HN ↗

                  Building luxury condos help with housing market as well. I don't think this is controversial (there are tons of studies that support the conclusion).

                  >>If you let the "market" decide on its own it will always decide on the most profitable items, even if that's not what is needed.

                  How do you define "not needed"? Businesses will build what they can sell - the very definition of needed. The problem is that it's difficult to build. A lot of cheaper housing projects don't get build because some restrictions (like height, number of apartments, parking places) that are not necessary.

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