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If we accept the premise that density is desirable, how does building more housing units actually lower rents in practice?

Housing is prohibitively expensive in Manhattan and it's also extremely densely populated, for example. Let's say we build more housing in DC's core by removing the height limit and the average rent in the metro area decreases; but rents in the core increase (due to higher demand for density) while the rents on the fringe decrease (due to greater overall supply of housing in the market). Has the policy succeeded because some housing in the overall market is now less expensive? Or has it failed because now the only affordable housing is the housing with the highest transportation cost?

by Rob on May 18, 2012 12:20 pm • link • report

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