The supply and demand argument
Since the 1920s, The City’s housing stock has grown by about 100,000 units. That number also could be the benchmark for tempering the housing crisis.
Mayor Ed Lee’s plan for the construction of 30,000 housing units by 2020 rests in part upon his oft-mentioned belief in the powers of supply and demand to bring down or at least stabilize housing costs.
Yet at least one impartial believer in supply and demand, The City’s chief economist, has put the issue into numerical perspective: To noticeably impact prices, it would take the construction of 100,000 market-rate units.
At a time in which progressives and their moderate opponents are debating how to solve or at least lessen the impacts of a housing shortage, supply and demand is center stage… (more)