I think what you’re highlighting is a symptom not the cause.
US homeowner vacancy rate is relatively stable over the past 10 years bouncing between 1-2%. You’ve highlighted a specific subset of homes where the rate is 8% and im expected to believe that this is causing house prices to inflate? I’m sorry but thats a weak argument. The article you linked says that luxery apartments were built because it was the only way to get acceptable returns from the high valued land and even then the vacancy rate is only 11% for 4-5 star apartments.
Once developers noticed that the demand wasn’t there they stopped building luxury apartments but the land value is still to high for them to build the affordable apartments that are in demand. This is a problem only city planning can address. The ways cities can address this is to invest in their own affordable housing units in these areas to drive down the prices by forcing competition. Zone extra land for housing. Basically just build more houses or reduce demand.
I think what you’re highlighting is a symptom not the cause.
US homeowner vacancy rate is relatively stable over the past 10 years bouncing between 1-2%. You’ve highlighted a specific subset of homes where the rate is 8% and im expected to believe that this is causing house prices to inflate? I’m sorry but thats a weak argument. The article you linked says that luxery apartments were built because it was the only way to get acceptable returns from the high valued land and even then the vacancy rate is only 11% for 4-5 star apartments.
Once developers noticed that the demand wasn’t there they stopped building luxury apartments but the land value is still to high for them to build the affordable apartments that are in demand. This is a problem only city planning can address. The ways cities can address this is to invest in their own affordable housing units in these areas to drive down the prices by forcing competition. Zone extra land for housing. Basically just build more houses or reduce demand.
Wow, I guess I was wrong. You have convinced me. My facts obviously don’t hold a candle to against your strongly held opinion.