Yesterday Ester wrote about median one-bedroom rents reaching highs of more than $4,000 in NYC, and earlier this month I linked to a story from Southern California Public Radio discussing the high rents in Los Angeles. As cities become wealthier and price out low-income workers and the middle- and creative classes, what can be done? Shaila Dewan examines this question in the It’s the Economy section of the Times Magazine:
The rules of the market say that in this situation, people should simply opt to live someplace cheaper. But in today’s economy, that’s not so simple. Detroit has very cheap housing, but unfortunately, all of it is in Detroit. Alternately, more desirable cities could build more housing to satisfy demand, but new developments don’t tend to have that effect.
Luxury towers are sprouting up, adding density to unlikely places, from the Brooklyn waterfront to San Francisco’s Mid-Market district. But adding inventory to the high end does nothing to help the middle — one of the many irritating peculiarities of the 21st-century boomtown housing market. Building new apartments can actually push rents higher, and amenities for the masses, like transportation and parks, may have the effect of pricing them out. Everyone wants to live in these places, so no one can afford to. What’s a global city to do?