Has there been any work done to try to estimate the elasticity of demand for rentals in NYC? The elasticity in Austin and Minneapolis were wild (2.5) and I assume if just took half of that, it would be fairly easy to get rents down across the board if we are open to making it easier to build.
another interesting question is how much wealthy people combining supply has caused prices to go up. NYC could easily solve this as well. for every co conversion, they could make the person invest in REIT or similar to keep supply static.
act as a top tier real estate analyst. calculate the the elasticity of demand of rentals in Austin from 2020-2024 using construction plus population growth to estimate how many market rate housing would be needed to be constructed to reduce market rate housing in NYC by 20%. keep in mind that NYC has rent stabilized and market rate housing that is separate.
high level, once you get to 5-6% vacancy, prices start to collapse. that should be the explicit goal
Has there been any work done to try to estimate the elasticity of demand for rentals in NYC? The elasticity in Austin and Minneapolis were wild (2.5) and I assume if just took half of that, it would be fairly easy to get rents down across the board if we are open to making it easier to build.
Required supply increase = 20% / 1.25 = 16% increase in market-rate stock
16% × 1,118,000 market-rate units = ~178,900 market-rate units
This seems like an interesting topic to design a prize around!
another interesting question is how much wealthy people combining supply has caused prices to go up. NYC could easily solve this as well. for every co conversion, they could make the person invest in REIT or similar to keep supply static.
I think it's about that.
test this out in any pro LLM:
act as a top tier real estate analyst. calculate the the elasticity of demand of rentals in Austin from 2020-2024 using construction plus population growth to estimate how many market rate housing would be needed to be constructed to reduce market rate housing in NYC by 20%. keep in mind that NYC has rent stabilized and market rate housing that is separate.
high level, once you get to 5-6% vacancy, prices start to collapse. that should be the explicit goal