Political Memes

Any new housing is still helpful for alleviating the crunch. If a rich people see a fancy new apartment and move in, that leaves the old places they had occupied available to be rented or bought and they have to be offered at a relative discount to what they would have been otherwise because the rich people prefer the fancy new place. (Note: if people in that area are snapping up housing at a faster rate than housing is being made available, that would still manifest as rising prices but with the prices rising at a slower rate than they would have otherwise.) That’s an opportunity for the less rich people to secure a spot where the rich people used to be, so they move out of their older and less nice places and so on to relocate. Within five years or so that propagates down the vacancy chain and opens up low income housing as well.

Also many times any kind of new apartment is called “luxury” as a marketing gimmick since it’s not really a controlled term and it makes people think of it as a more attractive place to live.

More housing needs to be built to alleviate the housing crisis. Unfortunately with housing also doubling for many as their largest investment and a retirement vehicle all rolled in one, people get absolutely furious if anything is done that would appreciably reduce the price of housing. Because homeowners make up so much of society and particularly politically influential society those interests are very politically difficult to take on.