I've been following a discussion on a Land Use Forum about why homes and rentals in Seattle are becoming more and more expensive despite the frenetic level of construction. I came across an interesting analysis written by a Seattle Times staff columnist Brer Dudley. Here is an excerpt.
"Seattle should reconsider policies based on the false assumption that this is a simple supply and demand problem. The supply of various types of in-city housing will always be limited and demand is practically unlimited, so supply and demand will never even out.
Yes, growth in apartment rents is expected to moderate and vacancies will increase as new units become available over the next few years. But the city will always be relatively unaffordable as long as it's economically strong. Yet we still cling to promises that it will get better "if only we build more, more, more!"
At what point will the city pause and assess whether its "build baby build" policies work as promised for renters and buyers (vs for developers and politicians they support ...) and their downsides?"