Quote:
Originally Posted by topfiverecords
How do you incentivize developers that are sitting on epic amounts of land, along with the city sitting on loads of vacant or underused land, to get projects underway that would bring tens of thousands of units, perhaps even a hundred thousand units online within a few years? Interest rates, appear to the main impediment right now, with concrete construction costs second.
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The primary incentive for developers is a monetary one, but the secondary one is opportunity costs.
It would be very difficult to align dozens of big developers to build "a hundred thousand units" within a few years because even during periods of high growth / demand, dumping that many units on the market in a short period of time would erode prices, which then not only lowers the margins for the developers, but also plays out as a wasted opportunity for the holdings they had.