Encore Episode: Market-Rate Development and Neighborhood Rents with Evan Mast
UCLA Housing Voice
Building Housing: A Double-Edged Sword for Affordability
Building housing can stabilize prices at metropolitan and regional levels, even when the new housing is market rate. However, a lack of sufficient housing supply leads to rising prices due to increased competition among potential residents. While regional-level data shows positive effects on affordability from increased housing supply, local zoning and development decisions tend to be hyper-local, complicating this picture. There's a notable concern that new market rate housing in lower-income neighborhoods, while beneficial regionally, may negatively impact the local community by attracting higher demand and potentially leading to gentrification. This leads to a dual effect: increased supply may decrease prices, while heightened demand can drive them up. The challenge remains in determining which effect is stronger at the neighborhood level, an analysis now made feasible with new data sources from platforms like Craigslist and Zillow, allowing for deeper examination of rent trends.
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