Housing as Infrastructure

 

It’s hard to calculate market rents, but it’s easier to define below market rents: zero dollar. So we can build to accommodate as many as we can afford? Should there be user fees?

Let’s think of infrastructure as something like bridge to nowhere, an extreme example of “build to accommodate”. Any city has a price tag, and of course we can’t expect this kind of infrastructure to be free when the majority housing in the city isn’t free. Also, the economy of the city add value to housing, unless the city is a destination of a bridge to nowhere.

So, how to set below market rents, to make them affordable? How about cap rate = 2%? 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s