03-19-2024, 11:29 AM
(03-19-2024, 11:09 AM)tomh009 Wrote:(03-19-2024, 10:29 AM)bravado Wrote: Forcing developers to under-price one specific type of housing just means we will get even higher costs passed down to customers OR we will just get less of it.
Forcing a 50 unit apartment to sell a portion for less but allowing a 50 unit detached home subdivision to sell all 50 at full price just means you’re going to get more houses and fewer apartments. Our cities seem to think that developers are somehow not motivated by costs.
At the peak, 5% of the units would need to be affordable. So, let's assume for the affordable units, the rent or selling price will cover only half the costs (in most cases it will cover more than that). Based on that, 95% of the buyers will need to cover 97.5% of the costs. A 2.6% uplift in prices is certainly not massive, and will not price many people out of the market. The affordable units will be available for those struggling with today's housing prices in any case.
I would personally be happy to pay 2.6% more for my next real estate purchase if it enables 5% affordable housing.
That said, they really should apply this type of inclusionary zoning to new lower-density subdivisions as well.
I think the point is that this is a 2.6% increase in the cost of medium and high density housing relative to low density housing.
Even if it is small, it's one of many many subsidies which do this...