matthestMar 19

Austin’s surge of new housing construction drove down rents

https://www.pew.org/en/research-and-analysis/articles/2026/03/18/austins-surge-of-new-housing-construction-drove-down-rents

Austin’s Surge of New Housing Construction Drove Down Rents

After decades of explosive growth, Austin, Texas, in the 2010s was a victim of its own success. Lured by high-tech jobs and the city’s hip reputation, too many people were competing for too few homes. From 2010 to 2019, rents in Austin increased nearly 93%—more than in any other major American city. And home sale prices increased 82%, more than in any other metro area in Texas.

Show threadpclowesMar 19

Its wild how the solution to housing costs is really just:

Build more housing. Keep law and order.

No it doesn’t need to be “affordable”. Yes rent control is a terrible idea.

Just build more housing.

Note: that the US already has plenty of housing and housing costs basically go up in areas of low crime relative to economic opportunity. If you build housing, but allow crime to rise, you have wasted everybody’s time.

Show threadestearumMar 19

New construction has already decelerated in Austin due to falling prices, which compresses already-near-zero margin on real estate development.

So yes, it really is "just build more housing." The problem is: why would you build more housing as prices fall?

Show threadadrianNMar 19
There is the possibility that the government builds housing, since the government doesn't have to care about direct profits and can include the overall economic effects of affordable housing in its calculations. We don't expect much direct profits from roads either, but we keep building more and more of them.
Show threadrayinerMar 19
That only makes sense if there is a positive externality from housing. Is there?
Show threaddonkeybeerMar 19
Why shouldn't housing, like any other goods, be as cheap as possible for as high quality as possible?
Show threadpembrookMar 19

Because "cheap" government housing has never been "high quality" in the history of the world. Those two properties are antithetical.

Humans don't have a ton of preferences for the electricity they consume or the water they drink, just that it exists. It's a commodity, so a good task for government. Housing is not an undifferentiated commodity and is subject to extreme variances in preference. Markets do differentiation and preference matching infinitely better.

Hence why Government housing always takes the form of a utilitarian blight on the community with giant towers of tiny apartments with tiny windows...doesn't matter if its communist Russia or the richest capitalist city on earth (NYC), all government housing results in the same outcome.

Assuming someone will chime in with some "halo" government housing project in the nordics that represents like 0.01% of the government stock there but socialists will use as propaganda. However, it's important to remember these are not cherry picked examples, they are median examples:

[1] NYC government housing: https://www.brickunderground.com/sites/default/files/styles/...

[2] Russian government housing: https://i.redd.it/twz37r739xse1.jpeg

Show threaddonkeybeer

Not just government made housing but any housing. Housing market needs don't seem to have as much wide fragmentation as eg most of the Western world seems quite happy with suburb style housing and most asia seems content with apartment though aspiring to owning houses.

I am saying just like any other capitalist endeavour, where things that barely existed or were quite expensive many years ago eventually reached a point where both the price became so low and quality so good that it became a mindlesss thing eg sawblades. And housing for whatever reason has been an extremely anticapitalist market. Even if we take the exact same houses people want today, their execution seems far from optimized. Think of something like precutting all the timber and sheets at a factory and doing some light adjustment and fitting on site, developing new materials that are cheaper or easier to work with tools, etc there are countless angles of attack.

In optics for example, it was mostly this rather bespoke work by a few artisans and people back then might have said this needs a fine touch that can't be done on mass scale. And then Carl Zeiss emerged. I feel housing is in the pre Carl Zeiss era.

EDIT: Neither example looks bad to me. The russian looks denser but both look clean and well organized. It doesn't at all look like blight to me, any more than a grid of houses in a suburb does. It's clean and geometric just like rows of houses in suburbs. If you like one but have a problem with another, I think you are trying to get offended deliberately.

Mar 19 at 9:34amWeb