This is the natural result of putting price caps on a market. It says so in the article. Only increasing supply can help with the cost of housing and it needs to be done above demand levels. Until units start sitting vacant that are actually on the market, you won’t see prices go down or people’s needs actually met.
Tokyo is the most populous city on the planet with like 3x the population of Paris, and yet it’s remarkably affordable. Why? It’s easy af to build there. Japan has a simple, nationwide zoning code that makes it extremely easy and streamlined to build new housing.
Clearly Tokyo has found the room. Paris has plenty of room.
You’re comparing only the cities proper. A better comparison is urban areas, i.e., the contiguous built-up regions, as stats for cities proper are skewed by the arbitrariness of municipal boundaries and stats for metropolitan areas are skewed by often encompassing large amounts of rural areas.
To compare urban area densities:
Tokyo urban area has a population of 39,105,000 and an area of 8,547 km2, for a density of 4,575 people per km2
Paris urban area has a population of 10,859,000 and an area of 2,854 km2, for a density of 3,805 people per km2
I don’t know why you are saying this. I know areas that are officially part of NYC that are less developed than areas around the city. The line of where a city ends and begins is a government thing not a reflection of where people really live. Just compare say Jersey City to anywhere on Staten Island.
Don’t compare how a random us city works with Paris. Different cities work in different ways and the people who live there don’t necessarily see things the same way.
The urban area is what people refer to as Paris. A good comparison is Los Angeles. Lots of people say they “live in LA” but in fact live in Santa Monica or Long Beach or Pasadena or any of a million other suburbs that together form the Los Angeles urban area.
When people say they live in Paris, 99% of the time they’re not talking about the arbitrary municipal boundaries; they’re talking about the urban area.
When people say they live in LA, 99% of the time they’re talking about the urban area.
When people say they live in Buenos Aires, 99% of the time they’re talking about the urban area.
When people say they live in Tokyo, 99% of the time they’re talking about the urban area.
“Urban area” is simply a term meant to capture what people mean when they refer to a city, unrestricted by the arbitrariness of municipal boundaries.
What…? The “urban area” is the built area. If you lived in the “non urban area”, you’d live in a park or something. I don’t think you understood what the commenter and the data meant.
People who have never been here confuse Paris and its suburbs.
Paris is one of the few cities that has never grown. It has kept its size of 1860. So there are no places to build stuff on.
There are other cities around Paris, which are part of the urban area, if you like, but which are seen as less desirable by the locals.
Sorry, urban planning isn’t just a one size fits all thing. Each location has its own specificities. Paris grew that way. That led to a specific set of problems that aren’t just solved by just building new stuff.
Yeah, rent control is basically universally agreed-upon by economists to be a disaster for a city in the long term. If you want affordable housing, you need abundant housing.
Imagine 2 scenarios and imagine which one has cheaper rent:
There are 9 homes for every 10 households, or
There are 10 homes for every 9 households
It’s not hard to imagine. If landlords have a credible threat of vacancy, that gives the rest of us negotiating power. And negotiating power is power.
The best solution is for the state to build public quality housing that is well located, and charge rent only based on “cost”.
Vienna did this when they had a socialist government (in the early 20th century lmao), and still to this day since there is so much public housing and the cost to rent is so low, it controls the wider cost. Even non-public housing there is much cheaper than pretty much all cities of its size.
Also, creating laws that desincentivise owning more than 1-2 properties (taxing the shit out of third homes for example, and more for each additional one), or just making it outright illegal.
There’s actually a far more elegant type of tax that would have the effect you desire: land value tax.
In short, it’s a progressive, difficult-to-evade, and extremely economically efficient tax that – both in economic theory and in observed practice – cannot be passed on to tenants. Further, it strongly incentivizes new housing development, heavily penalizes real estate and land speculation, and improves affordability. In fact, it’s so well-regarded a tax that it’s been referred to as the “perfect tax”, and is supported by economists of all ideological stripes, from free-market libertarians like Milton Friedman – who famously described it as the “least bad tax” – to social democrats and Keynesians like Joseph Stiglitz. It’s simply a really good policy that I don’t think is talked about nearly enough.
It reveals that much of the anticipated future tax obligations appear to have been already capitalised into lower land prices. Additionally, the tax transition may have also deterred speculative buyers from the housing market, adding even further to the recent pattern of low and stable property prices in the Territory. Because of the price effect of the land tax, a typical new home buyer in the Territory will save between $1,000 and $2,200 per year on mortgage repayments.
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This is the natural result of putting price caps on a market. It says so in the article. Only increasing supply can help with the cost of housing and it needs to be done above demand levels. Until units start sitting vacant that are actually on the market, you won’t see prices go down or people’s needs actually met.
You can’t increase supply. There’s nowhere to build in Paris.
Tokyo is the most populous city on the planet with like 3x the population of Paris, and yet it’s remarkably affordable. Why? It’s easy af to build there. Japan has a simple, nationwide zoning code that makes it extremely easy and streamlined to build new housing.
Clearly Tokyo has found the room. Paris has plenty of room.
Tokyo density 6 200 / km²
Paris density 20 000 / km²
Tokyo may be larger, but you’re comparing two very different things.
You’re comparing only the cities proper. A better comparison is urban areas, i.e., the contiguous built-up regions, as stats for cities proper are skewed by the arbitrariness of municipal boundaries and stats for metropolitan areas are skewed by often encompassing large amounts of rural areas.
To compare urban area densities:
Tokyo is more dense.
Maybe, but people want to live in Paris. Not in the urban area.
I don’t know why you are saying this. I know areas that are officially part of NYC that are less developed than areas around the city. The line of where a city ends and begins is a government thing not a reflection of where people really live. Just compare say Jersey City to anywhere on Staten Island.
Don’t compare how a random us city works with Paris. Different cities work in different ways and the people who live there don’t necessarily see things the same way.
The urban area is what people refer to as Paris. A good comparison is Los Angeles. Lots of people say they “live in LA” but in fact live in Santa Monica or Long Beach or Pasadena or any of a million other suburbs that together form the Los Angeles urban area.
When people say they live in Paris, 99% of the time they’re not talking about the arbitrary municipal boundaries; they’re talking about the urban area.
When people say they live in LA, 99% of the time they’re talking about the urban area.
When people say they live in Buenos Aires, 99% of the time they’re talking about the urban area.
When people say they live in Tokyo, 99% of the time they’re talking about the urban area.
“Urban area” is simply a term meant to capture what people mean when they refer to a city, unrestricted by the arbitrariness of municipal boundaries.
Those aren’t good comparisons though. You cannot compare cities between them because that’s not how cities work.
What…? The “urban area” is the built area. If you lived in the “non urban area”, you’d live in a park or something. I don’t think you understood what the commenter and the data meant.
People who have never been here confuse Paris and its suburbs.
Paris is one of the few cities that has never grown. It has kept its size of 1860. So there are no places to build stuff on.
There are other cities around Paris, which are part of the urban area, if you like, but which are seen as less desirable by the locals.
Sorry, urban planning isn’t just a one size fits all thing. Each location has its own specificities. Paris grew that way. That led to a specific set of problems that aren’t just solved by just building new stuff.
Up
And at em!
That would work, but it isn’t allowed. So the only option at the moment would be down.
Yeah, rent control is basically universally agreed-upon by economists to be a disaster for a city in the long term. If you want affordable housing, you need abundant housing.
Imagine 2 scenarios and imagine which one has cheaper rent:
It’s not hard to imagine. If landlords have a credible threat of vacancy, that gives the rest of us negotiating power. And negotiating power is power.
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!justtaxland@lemmy.world
The best solution is for the state to build public quality housing that is well located, and charge rent only based on “cost”.
Vienna did this when they had a socialist government (in the early 20th century lmao), and still to this day since there is so much public housing and the cost to rent is so low, it controls the wider cost. Even non-public housing there is much cheaper than pretty much all cities of its size.
Also, creating laws that desincentivise owning more than 1-2 properties (taxing the shit out of third homes for example, and more for each additional one), or just making it outright illegal.
Housing shouldn’t be a commodity.
There’s actually a far more elegant type of tax that would have the effect you desire: land value tax.
In short, it’s a progressive, difficult-to-evade, and extremely economically efficient tax that – both in economic theory and in observed practice – cannot be passed on to tenants. Further, it strongly incentivizes new housing development, heavily penalizes real estate and land speculation, and improves affordability. In fact, it’s so well-regarded a tax that it’s been referred to as the “perfect tax”, and is supported by economists of all ideological stripes, from free-market libertarians like Milton Friedman – who famously described it as the “least bad tax” – to social democrats and Keynesians like Joseph Stiglitz. It’s simply a really good policy that I don’t think is talked about nearly enough.
Even a quite milquetoast land value tax, such as in the Australian Capital Territory, has been shown to reduce speculation and improve affordability:
I do like some Georgism myself, not gonna lie. It is also a good solution and its also compatible with even more revolutionary changes to the economy.