by Honolulu Mother
Our local news seems to take it as a received truth that building new luxury housing is at best neutral and probably harmful to the cause of creating affordable housing for local residents. This is something that usually causes me to rant to my husband, while clutching the paper, about how that is incorrect because there will always be something at the top of the market and someone with the money to buy the best available, so building new expensive housing (which is what developers are motivated to do) will push each preceding generation of housing slightly downmarket, and the ultimate effect is that the top-of-the-market housing of 20 years ago eventually becomes the middle-of-the-road housing of today, and ultimately more housing is more housing. This theory has in the past been based on My Personal Analysis rather than Actual Research, with examples drawn from aging condo buildings around town.
But now, how sweet to learn that Actual Research is backing me up! The study reported in this article found that building new luxury housing actually does increase the supply of affordable housing in an area.
Is affordable housing a hot issue in your area? Do you think the conclusion drawn from this study applies, or do you think there are other factors to consider in your area?