Quote:
Originally Posted by darklord700
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The cynic in me thinks that a tight housing market (and higher housing prices) is precisely what a city wants, despite all of its protestations to the contrary.
Higher housing prices equals higher tax revenues for the city.
A tight housing market equals a more powerful city council, which can award its friends and punish its enemies with land-use decisions.
Higher housing prices equals greater net worth numbers for the city residents, which provides a wealth effect and spurs consumption by the residents.
A tight housing market (and higher housing prices) is a back-door way to exclude undesirables from particular locations (and, conversely, keep them in only certain areas).
I could go on, but it should be obvious: a city can take steps to reduce a housing bubble independently of what the federal government and banks may do. One can only wonder why a city declines to avail itself of its many options...