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Market Urbanism Is Still Underrated

New data keeps coming in that shows that increases in housing supply tend to be followed by declining rental rates, even in the cities facing the highest demand. After a boom year for apartment construction in 2016, rents are falling in New York City, San Francisco, and Washington, DC.

Article: Market Urbanism Is Still Underrated MARCH 27, 2017 BY

Median rents for one-bedrooms across New York City fell by 9.1% in the past year.Even in San Francisco — the most productive city in the country — a burst of new supply in 2016 has led to falling rents. Estimates put rent year-over-year decline in prices at 1% to 9%.Rising vacancy rates and quarter-over-quarter declines in Seattle’s rental rates are a sign that it’s leaving a period of double-digit annual increases.A decade of increasing construction rates in DC has leveled off rent prices.Los Angeles has not seen the apartment boom that has benefitted renters in other expensive cities, and its rental rates are the fastest rising in California.Scott points out the striking correlation between housing construction and house prices in in-demand cities.

This trend of declining rents is some very preliminary evidence against Tyler Cowen’s claim that densification in expensive cities will result in economic growth, but not falling rents as more buildings draw in more business activity and talent. A New York developer echoes Tyler’s view: “There are so many units, but then they all get eaten up. That is the way New York works.”

California and President Trump are going to war with each other – The Washington Post

Donald Trump speaks with Rep. Darrell Issa (R-Calif.) after a rally in San Diego during the election campaign. (Jonathan Ernst/Reuters)

President Trump had harsh words for one of his most fervent opponents during the pre-Super Bowl interview with Fox News’s Bill O’Reilly that aired Sunday. Not President Vladimir Putin, mind you, whose alleged unpleasant habit of murdering journalists met with a shrug from the president. No, Trump lashed out at the nation’s largest state, California.

“I just spent the week in California,” O’Reilly said. “As you know, they are now voting on whether they should become a sanctuary state. So California and the U.S.A. are on a collision course. How do you see it?”

“Well, I think it’s ridiculous,” Trump replied. “Sanctuary cities, as you know I’m very much opposed to sanctuary cities. They breed crime, there’s a lot of problems. We have to well defund, we give tremendous amounts of money to California. . . . California in many ways is out of control, as you know. Obviously the voters agree or otherwise they wouldn’t have voted for me.”

“So defunding is your weapon of choice?” O’Reilly asked.

“A weapon. I don’t want to defund the state,” Trump said. “I don’t want to defund anybody. I want to give them the money they need to properly operate as a city or a state. If they’re going to have sanctuary cities, we may have to do that. Certainly that would be a weapon.”

Sanctuary laws received national attention in July 2015 after an illegal immigrant with prior deportations and a criminal history pleaded not guilty to murdering a woman at a San Francisco pier. President-elect Donald Trump has pledged to cut federal funding to sanctuary cities. Here’s what they are. (Jayne W. Orenstein and Osman Malik/The Washington Post)

Source: California and President Trump are going to war with each other – The Washington Post