So it's gonna be that much harder for a "regular" person to buy anything in the short term.
1) there is a 100 single family homes somewhere.
2) there are 300 people looking who need to live in that somewhere
3) on top of 100 single family homes now we have 400 units built
..
Can it be that price of the units for sale may get reduced for competitiveness?
https://www.latimes.com/business/real-estate/story/2020-01-3...
Here's an agent discussing this happening right now:
> Traditional sales comping remains relevant, but it should no longer be the single factor when determining price. Recent legislation allowing additional dwelling units (ADUs) is a game changer, as savvy investors and agents understand that accurate comps should now include not only neighborhood sales prices but also potential revenue from future ADU development.
> Gov. Gavin Newsom recently signed a slew of bills that will allow property owners to build a backyard home of at least 800 square feet or convert a garage, office or spare room into an additional living space. Single-family zoning effectively evaporated on Jan. 1 when the new laws went into effect.
If NIMBY's only cared about money this would be a fucking gold mine for them.
But the opposition to upzoning here in LA and the Bay Area is largely coming for qualitative reasons instead of quantitative reasons. And that's lost when you reduce your argument to "they only care about their property values" so you lose any chance to convince them...
Let's say you live in a neighborhood of mostly single family homes. A new law is passed changing the zoning to allow higher density, and other barriers to building up are reduced or eliminated.
A few people near you sell their homes; they're bulldozed and are replaced with multi-family units. Sure, over the short term, your home value might drop because of greater supply helping to meet demand.
However, over the long term, or even medium term, two things may happen:
1. Your home value goes up because single family homes are less available, and are more desirable.
2. Your home value goes up because developers want to buy your home in order to build a multi-family dwelling there.
Meanwhile, more people are able to live nearby, more affordably, likely cutting down their work commute and increasing their quality of life. I guess the incumbent owners really are that selfish that they fight tooth and nail to prevent others from increasing their quality of life.