1. Land zoned for more than a single-family home or just a few units is relatively scarce and thus expensive.
2. The planning process is ridiculously long, which means:
2a) They need to pay property taxes on the unimproved land for much longer without any income, and
2b) Investors expect a certain % return per year, so a longer amount of time between the investment and sale means you need higher prices.
3. Nearly every development project faces lawsuits from NIMBYs, and lawyers are expensive.
Remove rent control and we'd still have the same situation with new development.
1. Land zoned for more than a single-family home or just a few units is relatively scarce and thus expensive.
2. The planning process is ridiculously long, which means:
2a) They need to pay property taxes on the unimproved land for much longer without any income, and
2b) Investors expect a certain % return per year, so a longer amount of time between the investment and sale means you need higher prices.
3. Nearly every development project faces lawsuits from NIMBYs, and lawyers are expensive.
Remove rent control and we'd still have the same situation with new development.