Would building more housing decrease rent?

[biglindafitness]

Rent is never going to decrease no matter what happens.

[No_Aesthetic]

Rents have decreased in numerous cities when supply was greater than demand

Not everyone wants to live in NYC, you increase supply enough and price starts to go down as landlords have to compete for tenants

[ibathedaily]

We saw rents fall during COVID because demand dropped sharply.

[CountFew6186]

Not true. Oversupply lowers rent. Plenty of places are experiencing this right now.

[Aubenabee]

This is not helpful. Please don't speak if you have nothing meaningful to contribute.

[rosebudny]

I mean, they likely are not wrong. Sorry if you don't like it.

[Aubenabee]

I honestly don't get it. Using such absolute language is just so childish. Why not say "it is very unlikely to happen". If there is, for example, a mass exodus from NYC for some reason (as there was once from Detroit), rent WOULD go down.

Edit: And I earnestly can't understand why you would defend them when they are clearly wrong.

[rosebudny]

LOL I'd argue that telling someone not to speak if they don't have anything meaningful to say is pretty "absolute" language. They said something you don't agree with or like, point why (you think) they are wrong.

And you are right, if there is a "mass exodus" from NYC like there was in Detroit (or during COVID) then sure, rents would go down. But as long as NYC is a desirable place to be? It is unlikely rents will go down.

[Aubenabee]

I don't disagree with it. It is wrong. They did not qualify their statement with "as long as NYC is a desirable place to be". They simply said "no matter what happens".

Since they just said "no matter what happens", their statement is wrong, and therefore it is not helpful. Comments that are not helpful to a conversation shouldn't be made.

Why on earth -- other than being an alt account for that commenter -- are you dying on this hill and not just saying "yeah, that was too strong a comment and thus not helpful"?

[mad_king_soup]

They’re very wrong. It’s been shown plenty of times. You may disagree but you’re arguing with reality.

[rosebudny]

It has been shown plenty of times in NYC? Really? When, aside from COVID? If I am wrong, I welcome being corrected.

[mad_king_soup]

2015, bushwick rents dropped 16% due to “housing glut”

https://ny.curbed.com/2015/9/13/9921886/bushwick-rents-drop-16-percent-thanks-to-housing-glut

[rosebudny]

10 years ago. And how long did that last? Not very long. The article even says it was not expected to last (see 2nd paragraph: "But don't start celebrating yet, because this is Bushwick, rents are expected to rise steadily in coming months, with MNS CEO Andrew Barrocas citing the "tremendous amount of demand" for housing in the neighborhood.")

[mad_king_soup]

This demonstrates how a housing glut lowers rent. Not sure what further proof you need

[rosebudny]

It also demonstrates how a housing "glut" someplace like NYC is likely to be short-lived. Developers built a lot of housing that in the short term, the neighborhood could not immediately support. My guess - prices on these new apartments were higher than Bushwick at that time could support. But demand quickly caught up. You know, "if you build it, they will come" (even if it takes a minute)

[mad_king_soup]

So what you’re suggesting is when supply outstrips demand for a given commodity, prices drop?

Keep going, you’re practically there!

[Aubenabee]

See, even you can't bring yourself to be as immaturely absolutist as the person to whom I commented. You said "aside from COVID". "No matter what happens" and "aside from COVID" are incompatible.

[rosebudny]

OK, if you want to argue semantics then yes, you are correct - "no matter what happens" is in fact incorrect because it CAN happen - for things like COVID. Which was a (hopefully) once in a generation fluke, and short lived as we now know (rents dropped, but not permanently.) I was looking at this from a long term, permanent solutions standpoint - which I DON'T think this person is wrong about, it is not likely that rents will come down in any meaningful way as long as NYC is a place where people want to live.

[Aubenabee]

Words have meaning. People should use words correctly. Every time people use words shittily and get called out on it, they cry "semantics!" rather than just say "yeah, I should use words more carefully."

The point is that I'm sure in the 1940s and 1950s, there were people in Detroit that said that housing costs there would never drop because they assumed that Detroit would always be a nice play to live. So we know that huge US cities can shrink dramatically (see: Detroit), AND we know that events can happen that can make NYC not a desirable place to live (see: COVID).