underground
Senior Member
- Joined
- Jun 20, 2007
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The supply side is limited because their isn't enough housing, not because luxury housing demand is inelastic. Clearly the demand for luxury housing exceeds it's supply; that's why we have gentrification and conversion of low end units to high end units. If the inelasticity of luxury housing demand was indeed limiting it's supply, then we wouldn't have gentrification at all and the conversion rate would be more or less static.
Now as to your other point about changing the aesthetics of Boston neighborhoods, I totally agree with you there, and I think that we wouldn't have to, primarily for another point you make that I agree with; luxury housing demand is relatively inelastic. So, we aren't really talking about a need to build tens of thousands of units. Clearly there's a demand that's currently out pacing supply, but there is neither an infinite demand, nor in my opinion really that much demand at all. Personally, I think we'd be surprised at what would happen if we were to allow just a few more buildings a year to go up than we already do. Granted, that might be easier said than done in Boston, but like I said above, the reasons we don't already are well known and changeable.
Now as to your other point about changing the aesthetics of Boston neighborhoods, I totally agree with you there, and I think that we wouldn't have to, primarily for another point you make that I agree with; luxury housing demand is relatively inelastic. So, we aren't really talking about a need to build tens of thousands of units. Clearly there's a demand that's currently out pacing supply, but there is neither an infinite demand, nor in my opinion really that much demand at all. Personally, I think we'd be surprised at what would happen if we were to allow just a few more buildings a year to go up than we already do. Granted, that might be easier said than done in Boston, but like I said above, the reasons we don't already are well known and changeable.