Recent reports and commentary on the housing market indicate a trend where an increase in apartment supply is leading to lower rents, particularly for upper-income renters. A Wall Street Journal article by @_willparker_ highlighted by a user underscores this trend, suggesting that the effects are even more pronounced in neighborhoods with the highest supply, according to the Yardi macro data. In downtown Oakland, the influx of new housing supply is prompting property owners to reduce rents and sell their buildings, which, while detrimental to real estate investors, is beneficial to renters. The sentiment is echoed by several users who note that this trend confirms what pro housing people have long argued: increasing supply, even in the luxury segment, can drive down overall rental costs. Additionally, a new Vox piece discusses the success of publicly-owned housing in Montgomery County, MD, which has inspired other cities to consider similar models, with federal entities like HUD and the Furman Center for Real Estate and Urban Policy (@FurmanCenterNYU) taking interest in the approach.
Notice how lower housing prices & rents are described as "disaster" & "distress" Lower housing prices are AMAZING! For young people, poor people, and families Lower prices are bad for are Wall Street & homeowners, whose perspectives are the only ones represented in the press https://t.co/cPMDu0p5OU
New Vox piece I'm excited to share: I wrote about the success of new publicly-owned housing built recently in Montgomery County, MD that has inspired cities like Atlanta, Boston, Chicago to follow suit. HUD + @FurmanCenterNYU also exploring the model. https://t.co/SKf4qFv5jp https://t.co/c6DpThT1S1
Amazing. More supply drives rents down Even when the bulk of the building / new supply is in luxury This is what a lot of pro housing people have been screaming for years See when you build no housing - then people who would have rented luxury get compressed into the next… https://t.co/4o8CgWOCRC
Good article in the WSJ from @_willparker_ on how apartment supply is pushing down rents for upper-income renters. One thing I'd add is that the story is even more interesting than the Yardi macro data cited suggests. When you drill down into the highest-supplied neighborhoods,… https://t.co/WRkgFxlNJ8
A load of new housing supply forcing downtown Oakland property owners to drop rents and sell their buildings is certainly bad for real estate investors but it's good for renters. https://t.co/XOT3tzUi3b