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?
EITHER pay the U.S. government taxes on the $3 billion he’ll have after Facebook’s IPO on Friday and continue to be allowed in the U.S. … OR pocket that money (which is tens-to-hundreds of millions of dollars), renounce his citizenship, move to Singapore, and be barred from the U.S. forever.
(Eduardo Saverin went with option two, which, okay. Hundreds of millions in taxes is a lot, yes. But you know what else is a lot? THREE BILLION DOLLARS. I personally like to retain flexibility, so I’d pay the taxes just to keep my options open. What if in twenty years I got sick of having posh apartments in every beautiful place ever and decided I really just wanted to settle down in a little house in Virginia? Exactly. Options. Mike Dang would obviously pay the taxes because of Ethics and Morals and Obligations. WWYD?)