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- filtering is based on the presumption that a neighborhood stays at its price point and never increases in value but can decline in value,

You and I are talking about different things. I'm not talking about filtering as if it is a policy. I'm talking about filtering as a description of how the housing market works.

Filtering is merely how the market works. I agree that the specific submarkets and their neighborhoods can and do filter up and down market, but that is also impacted by the restrictions on adding new supply to areas in-demand.

There is no room for the less well off in this scenario.

Which is why the policy responses to this phenomena involve adding more supply - both more market-rate units and more subsidized units. Either way, the response to an increase in demand is more supply.

by Alex B. on Jan 28, 2013 12:29 pm • linkreport

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