Even if the cost of housing dropped 30%, do you think our bus drivers could afford a house/townhouse?
And do you think we can build enough housing to cause, say, a 10% drop, or a 30% drop? (Not saying we shouldn't try... just that it'll have a minor effect.)
You don't need an [overall] "drop" in prices. You need housing prices within a broader range. The other problem is Prop 13, which freezes taxes for the current homeowner, thereby incentivizing the fight against new development. Forget that I mentioned Prop 13 for a second and just imagine cities in the Bay moving mountains (or rather, single-story/use retail) to incentivize the construction of four times as much housing at all price ranges. There is a reason a place like Atlanta is affordable - they build.
How we build is another topic but just focusing on underutilized properties and getting permissions and rights out of the way faster would make a huge difference in the cost - to - build. I come on HN to talk this a lot because I am a developer turned developer and if housing where as easy to build as software...you could drive a bus and not have to sleep in it.
An 80% drop is probably achievable, it's also not going to happen. Housing in the US is a horrable mix of bad incentives resulting in a large drag on the economy.
The indirect costs where a taxi is more expencive because rent is more expencive means homeoners should be better off with a drop in prices. However, everyone acts like their own investment is the only important thing.
Probably not a house or townhouse, but there are many cities in the world where hardly anyone can afford that anyway. We should aspire to create affordable, nice apartments. You can raise a family of four comfortably (not by American standards, but world standards) in a 1000sqft apartment.
And do you think we can build enough housing to cause, say, a 10% drop, or a 30% drop? (Not saying we shouldn't try... just that it'll have a minor effect.)