tjrileywisc t1_j8p70lm wrote
Reply to comment by SuckMyAssmar in Gentrification by [deleted]
Here's a recent paper about this process (housing chains) working in Helsinki:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3929243
While this is frequently derided as 'trickle down housing', it's not like the supply side economic theory about always lowering taxes on rich people. Housing chains are more like the used car market- someone paid to have a new car and eat the cost of depreciation while selling their previous car at at a much lower price than they bought it.
SuckMyAssmar t1_j8p7qqo wrote
Hmm ok. Inflation right now is insane, obviously, but I will read this paper in a bit. Initial thought is that the older (relative term) being sold still isn’t affordable to the ‘average’ person, aka someone that isn’t a software engineer or works in biotech.
tjrileywisc t1_j8p8qhv wrote
That's fair, but I would say what you are looking for is for any price gradient to not go up as steeply and hopefully wages rise to meet it in a more sane place (that paper suggests in two years you can see a clear impact).
As an example of where this is going well, Tokyo builds enough housing supply that a recent college graduate can rent without roommates to my understanding.
SuckMyAssmar t1_j8p95qg wrote
Yes and thank you - I was not aware of that in Tokyo!
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